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?

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