00:01
The question is asking about cost of goods sold for a certain month of a product labeled c1 ,23.
00:09
So it gives us a lot of information and we kind of have to sift through what is necessary and what is not.
00:16
So for example, c produced, or the number of units produced of product c, 123 is 10 ,000 for the month.
00:27
But only 8 ,000 were sold.
00:31
So those are both important numbers to start with.
00:34
So let's just note that 10 ,000 were produced, and 8 ,000 were sold.
00:50
Then we're told the prime cost for the month is $50 ,000.
00:55
So prime cost is the combination of direct labor and direct materials.
01:00
So that means the next comment says the direct labor is 15 ,000.
01:06
We don't need to include in our calculation because it's already in this number here.
01:12
We don't want to count it twice.
01:14
But manufacturing overhead is 10 ,000.
01:18
So we're trying to determine cost of goods sold.
01:21
So we're trying to find any numbers that we can add into the total cost of producing this product...