I. E1-7 Sales $86,625 Materials inventory (January 1) $28,875 Work in process inventory (January 1) $27,720 Finished goods inventory (January 1) $36,960 Materials purchased $24,255 Direct labor cost $20,790 Factory overhead (including $1,000 of indirect materials used and $3,000 of indirect labor cost) $13,860 Selling and administrative expenses $11,550 Inventories at January 31: Materials $25,410 Work in process $23,100 Finished goods $34,650 a. Prepare the Statement of cost of goods manufactured. b. Prepare Cost of goods sold.
I. E1-7
Sales $86,625
Materials inventory (January 1) $28,875
Work in process inventory (January 1) $27,720
Finished goods inventory (January 1) $36,960
Materials purchased $24,255
Direct labor cost $20,790
Factory
used and $3,000 of indirect labor cost) $13,860
Selling and administrative expenses $11,550
Inventories at January 31:
Materials $25,410
Work in process $23,100
Finished goods $34,650
a. Prepare the Statement of cost of goods manufactured.
b. Prepare Cost of goods sold.
II. E1-9 Determining materials, labor, and cost of goods sold
The following inventory data relate to Edwards, Inc.
INVENTORIES
ENDING BEGINNING
Finished goods $82,294 $120,698
Work in process $87,780 $76,808
Direct materials $104,239 $98,753
Revenues and Cost for the period:
Sales $987,525
Cost of goods available for sale $850,369
Total
Factory overhead $192,019
Direct materials used $224,936
Calculate the following for the year:
a. Direct materials purchased
b. Direct labor costs incurred
c. Cost of goods sold
d. Gross profit
(Hint Answers to subsequent parts may require using solutions from earlier parts)
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