Student Doubts Forum

2122 Spring Midterm Q1

Re: 2122 Spring Midterm Q1

by Pedro Pinto da Silva Perdigão -
Number of replies: 0
Hello Seif,

Your mistake was on the calculation of the consumption of Direct Materials. You need to first calculate the WAC of all units, get to the COGM/unit and then multiply by the number of units.

So, (1 000*6,5€ + 2 000*8€) / 3 000, which would get you a COGM/unit of 7,5€

Then you just have to multiply by the 2 500 units used, and you would get 18 750€ instead of 18 500€.

Good study!