(Solution) - Durable Concrete mixes and trucks concrete to construction sites The -(2025 Original AI-Free Solution)

Paper Details

Durable Concrete mixes and trucks concrete to construction sites. The company uses a standard costing system for the batches of concrete produced. The company has a fleet of 10 mixing trucks, each of which goes on three runs per day, 250 days per year under normal circumstances. The standard costs are as follows:
Standard costs per batch based on 750 batches per year Amount
Raw materials?gravel, sand, cement, chemicals???????????.$ 1,500
Wages?????????????????????????????.500
Variable overhead?mixing truck depreciation, diesel, etc????????...200
Fixed overhead?depreciation on raw materials silos??????????...300
Total production cost per batch?????????????????..S 2.500
Opening inventory cost?all raw materials???????????..$1,200,000
Ending inventor)' cost?all raw materials????????????..$ 900,000
During 2013, the company received an unusually large order for a big construction project. As a result, Durable Concrete had to extend its operating hours and days, temporarily increasing output to 900 batches for the year. The company used the first-in, first-out cost flow assumption. Actual variable costs approximated standard costs per batch. Depreciation rates established at the beginning of the year remain valid for the year.
Required:
Determine the amount of cost of goods sold for 2013.