Chapter 16, Problem 30AP

Root Shoe Company makes loafers. During the most recent year, Root incurred total manufacturing costs of $26,300,000. Of this amount, $2,000,000 was direct materials used and $19,800,000 was direct labor. Beginning balances for the year were Direct Materials, $700,000; Work-in-Process Inventory, $1,500,000; and Finished Goods Inventory, $400,000. At the end of the year, balances were Direct Materials, $800,000; Work-in-Process Inventory, $1,200,000; and Finished Goods Inventory, $600,000.

Requirements

Analyze the inventory accounts to determine:

1. 1. Cost of direct materials purchased during the year.
2. 2. Cost of goods manufactured for the year.
3. 3. Cost of goods sold for the year.