Allied Company Showed the Following Costs for Last Month Last Month,Allied Produced and Sold 20,000 Units at a Sales

question 91

Essay

Allied Company showed the following costs for last month. $$\begin{array} { l r } \text { Direct materials } & \$ 40,000 \\\text { Direct labour } & 35,000 \\\text { Overhead } & 52,000 \\\text { Selling expense } & 17,000 \\\text { Administrative expense } & 12,000\end{array}$$ Last month,Allied produced and sold 20,000 units at a sales price per unit of $18.Assume no beginning or ending inventory balances for work in process and finished goods inventory.
Required: Solve for the following amounts. A. $\quad$ total product cost for last month
B. $\quad$ unit product cost for last month
C. $\quad$ total period costs
D. $\quad$ gross margin for last month
E. $\quad$ operating income for last month

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Definitions:

Human Relations

The field of study that examines how communication and relationships between individuals and groups affect organizational behavior and performance.

Productivity

The efficiency with which an organization or individual converts inputs into outputs, often measured as the amount of goods or services produced per unit of input.

Social Setting

The physical and social context in which people live, work, or interact, influencing their behavior, interactions, and perceptions.

Illumination

The provision of light, making something visible or brightened, or the process of clarifying and making something understood.