2. during its first year of operations, silverman company paid $8,065 for direct materials and $9,600 for production workers'wages. lease payments and utilities on the production facilities amounted to $8,600 while general, selling, and administrative expenses totaled $4,100. the company produced 5,150 units and sold 3,100 units at a price of $7.60 a unit. what is silverman's cost of goods sold for the year?

COGS= $15,810

Explanation:

Giving the following information:

During its first year of operations:

Direct material= $8,065

Direct labor= $9,600

Lease payments and utilities on the production facilities= $8,600 General, selling, and administrative expenses= $4,100.

The company produced 5,150 units and sold 3,100 units.

Price of $7.60 a unit.

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

cost of goods manufactured= direct materials + direct labor + manufacturing overhead= 8065 + 9600 + 8600= $26,265

Variable costs= 26265/5150= $5.1

beginning finished inventory= 0

ending finished inventory= 5150-3100= (2050 units*$5.1)= 10455

COGS= 0 + 26265 - 10455= $15,810

answer; i believe the correct answer is (business necessity defense;