Classic Coolers manufactures portable coolers adorned with college logos. During the first quarter of the year, the company had the following costs:
Direct materials used $55,500
Direct labor 30,500
Factory rent 65,500
Factory equipment depreciation 13,500
Office equipment depreciation 1,300
Marketing expenses 5,100
Administrative expenses 15,500
The company had no beginning or ending work in process inventory and no beginning finished-goods inventory. Although 7,000 units were started and finished during the quarter, just 4,300 were sold, for an average price of $33 each.