Sales $792,000
Gross profit 462,000
Cost of goods manufactured 396,000
Indirect labor 171,600
Factory depreciation 26,400
Materials purchased 244,200
Total manufacturing costs for the period 455,400
Materials inventory, ending 33,000
Using the above information, determine the following missing amounts:
a. Cost of goods sold
b. Finished goods inventory at the end of the month
c. Direct materials cost
d. Direct labor cost
e. Work in process inventory at the end of the month
Answer:
a. Sales……………………………………………………………………… $792,000
Less gross profit………………………………………………………… 462,000
Cost of goods sold……………………………………………………… $330,000
b. Cost of goods manufactured………………………………………… $396,000
Less cost of goods sold……………………………………………… 330,000
Finished goods inventory…………………………………………… $ 66,000
c. Purchased materials………………………………………………… $244,200
Less materials inventory……………………………………………… 33,000
Direct materials cost…………………………………………………… $211,200
d. Total manufacturing costs…………………………………………… $455,400
Less: Direct materials……………………………………………… $211,200
Factory overhead costs (indirect labor
and factory depreciation)*………………………………… 198,000 409,200
Direct labor cost……………………………………………………… $ 46,200
* $171,600 + $26,400
e. Total manufacturing costs…………………………………………… $455,400
Less cost of goods manufactured…………………………………… 396,000
Work in process inventory…………………………………………… $ 59,400