The following information is available for the first month of operations of Ende
ID: 2350508 • Letter: T
Question
The following information is available for the first month of operations of Enders Company, a manufacturer of mechanical pencils:Sales-630,000
Gross profit-330,000
Cost of goods manufactured-315,000
Indirect labor-84,000
Factory depreciation-22,000
Material purchased-164,000
Total manufacturing costs for the period-362,000
Materials inventory-22,000
Using the above information, determine the following missing amounts:
a. Cost of goods sold: $
b. Finished goods inventory: $
c. Direct materials cost: $
d. Direct labor cost: $
e. Work in process inventory: $
Explanation / Answer
Using the above information, determine the following missing amounts:
a. Cost of goods sold: $
b. Finished goods inventory: $
c. Direct materials cost: $
d. Direct labor cost: $
e. Work in process inventory: $
Sales ............................................................................. $630,000
Less gross profit ......................................................... 330,000
Cost of goods sold ...................................................... $300,000
=======================
b. Cost of goods manufactured ..................................... $315,000
Less cost of goods sold ............................................. 330,000
Finished goods inventory ........................................... $ 15,000
==================
c. Purchased materials ................................................... $164,000
Less materials inventory ............................................ 22,000
Direct materials cost ................................................... $142,000
==================
d. Total manufacturing costs ......................................... $362,000
Less: Direct materials ...................................$142,000
Factory overhead costs (indirect labor
and factory depreciation) ............................ 106,000*=
Direct labor cost .......................................................... $114,000
======================================================
e. Total manufacturing costs ......................................... $362,000
Less cost of goods manufactured ............................. 315,000
Work in process inventory ........................................ . $ 47,000
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