Posted: July 31st, 2016

What was the amount of John’s fixed costs for the year?

The following table summarizes the beginning and ending inventories of Sears Co. For the month of October:
Sept. 30 Oct. 31
Raw Materials $ 29, 700 $31,000
Work-in-process 65,800 61,000
Finished process 52,700 46,200

Raw materials purchased during the month of October totaled $112,300. Direct labor costs incurred totaled $234,800 for the month. Actual and applied manufacturing overhead costs for October totaled $145,100 and $149,400, respectively.

1) Calculate the cost of goods manufactured for October.
2) Calculate the cost of goods sold for October (ignore under/overapplied overhead)
In 2010, John Co. sold 150,000 units of its product at a price of $40. The variable cost per unit was $24, and John reported net income for the year of $400,000. What was the amount of John’s fixed costs for the year?