a. Purchased $52,000 of materials. b. Used $40,000 of direct materials in produc

Question

a. Purchased $52,000 of materials.
b. Used $40,000 of direct materials in production.
c. Incurred $60,000 of direct labor wages.
d. Incurred $84,000 of factory overhead.
e. Transferred $140,000 of work in process to finished goods.
f. Sold goods with a cost of $110,000.
g. Earned revenues of $250,000.
h. Incurred $64,000 of selling expenses.
i. Incurred $28,000 of administrative expenses.



what is net income....__________ ???

B) Determine the inventory balances at the end of the first month of operations.

Inventory balances on March 31, 20—:
Materials: $ _____________
Work in process: $_____40000_______ got this answer.)
Finished goods: $ _______________

Explanation / Answer

a. Net income Particular Amount Revenues $250,000 Less: Cost of Goods Sold $110,000 Gross Profit $140,000 Less: Selling Expense $64,000 Administrative Expenses $28,000 Net Profit $48,000 b. Determine the inventory balances at the end of the first month of operations Raw Materials Opening Balance $0 Add: Purchases $52,000 Less: Raw material Consumed $40,000 Ending Balance $12,000 Work in Progress Opening Balance $0 Add: Raw Material Used $40,000 Labor Cost Incurred $60,000 Factory Overhead $84,000 $184,000 Less: Transferred to Finished Goods $140,000 Ending WIP $44,000 Finished Goods Opening Balance $0 Add: Transferred From WIP $140,000 Less:Cost of Good Sold $110,000 Ending Balance $30,000

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