Wednesday, 24 June 2020

Calculate the amount of direct materials used in production

Selected account balances of Manufacturing Company appear below for 20XX:
Beginning of year End of year
Finished goods inventory $20,000 $ 26,000
Work in process inventory 30,000 35,000
Raw materials inventory 46,000 26,000
Sales 340,000
Direct labour 55,000
Factory supervisory salaries 18,000
Income tax expense 25,000
Factory insurance 12,000
Raw material purchases 90,000
Administrative expenses 27,000
Sales returns and allowances 15,000
Factory depreciation expense 22,000
Indirect labour 11,000
Selling expenses 35,000
Required
Using the above information for Manufacturing Company, answer the following questions.
Support your answers with clearly identified formula and computations or a schedule in a required format.
1. Calculate the amount of direct materials used in production
2. Calculate the total manufacturing costs incurred
3. Calculate the cost of goods manufactured
4. Calculate the cost of goods sold
5. Calculate the amount of net income

No comments:

Post a Comment

Note: only a member of this blog may post a comment.