Cost Accounting

Question 1 COGM, COGS, CVP ( 14 Marks)

Find the unknowns designated by the capital letters:

|Account |Amount |

|Direct materials used |A |

|Direct manufacturing labour |B |

|Variable marketing, distribution, customer service, and administrative costs |$ 28,000 |

|Fixed manufacturing overhead |$ 29,000 |

|Fixed marketing, distribution, customer service, and administrative costs |$ 12,000 |

|Gross Margin |20% of Sales Revenue |

|Finished goods inventory, January 1, 2011 |$ 8,000 |

|Finished goods inventory December 31, 2011 |$ 6,000 |

|Contribution margin (dollars) |C |

|Revenues |$ 230,000 |

|Direct material inventory, January 1, 2011 |$ 30,000 |

|Direct material inventory, December 31, 2011 |$ 20,000 |

|Variable...