The following information relates to the operations of Cruz Manufacturing during the current year: Raw materials used $ 20,000 Direct labor wages 60,000 Sales salaries and commissions 50,000 Depreciation on production equipment 4,000 Rent on manufacturing facilities 30,000 Packaging and shipping supplies 6,000 Sales revenue 190,000 Units produced and sold 10,000 Selling price per unit $ 20.00 Based on this information, what is the company's cost of goods sold?

$114,000

Explanation:

To calculate the Cost of Goods sold we would first needs to know Product Costing in Manufacturing firms.

The formula for which is,

Product Costing = (Materials cost + Labor costs + Overhead costs) ÷ Number of units produced

It is important to calculate this because when multiplied by the number of units SOLD, you get Cost of goods sold.

Calculating therefore would be,

Product Costing = 20,000 + 60,000 + (4,000 + 30,000) depreciation and rent on manufacturing facilities ÷ 10,000 units produced

= $11.40 per unit

Now we can calculate the Cost of goods sold by,

Cost of goods sold = Number of units sold × Product Costing in Manufacturing Companies

Cost of goods sold = 10,000 units sold × 11.40

= $114,000

The company's cost of goods sold is $114,000.

answer; balance sheets;

answer/// there is an inverse relationship between price and quantity demanded;