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Question: The management of Woznick Corporation has been concerned for some time with the financial performance of its product V86O and has considered discontinuing it on several occasions. Data from the company's accounting system for this product for last year appear below: Sales $ 150,000 Variable expenses $ 72,000 Fixed manufacturing expenses $ 50,000 Fixed selling and administrative expenses $ 33,000 In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V86O is discontinued. According to the company's accounting system, what is the net operating income earned by product V86O? Include all costs in this calculation-whether relevant or not.
Finished bricks were sold to customers. According to the company's process costing system, the cost of the finished bricks sold was $106,000.
Compute the adjusted cost of goods sold for the year assuming the company closed out all underapplied or overapplied overhead to cost of goods sold
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