The following information was taken from the accounting records of the Ross Manu
ID: 2418725 • Letter: T
Question
The following information was taken from the accounting records of the Ross Manufacturing Company. Unfortunately, some of the data were destroyed by a computer malfunction.
Case C
Sales 40,000
Finished goods inventory, January 1, 2012 5,000
Finished goods inventory, December 31, 2012 6,000
Cost of goods sold ?
Gross margin 15,000
Selling and administrative expenses ?
Net income 10,000
Work-in-process, January 1, 2012 ?
Direct material used 6,000
Direct labor 7,000
Factory overhead 10,000
Manufacturing costs incurred during 2012 ?
Work-in-process, December 31, 2012 4,000
Cost of goods manufactured ?
Direct materials inventory, January 1, 2012 1,000
Direct materials inventory, December 31, 2012 3,000
Direct materials purchased throughout 2012 8,000
Solve for the ? marks
Explanation / Answer
Ross Manufacturing Company Details Amt $ Sales 40,000 Less Gross Margin (15,000) a Cost of Goods Sold 25,000 b FG Inventory Jan 1 2012. 5,000 c FG Inventory Dec 3 1 2012. 6,000 d Cost of Goods Manufactured =a-b+c= 26,000 Manufacturing costs in 2012 Direct Materials used 6,000 Direct Labor 7,000 Factory Overhead 10,000 e Total Manufacturing costs in 2012 23,000 f WIP Dec 31 2012 4,000 g WIP Jan 1 2012=d+f-e= 7,000 h Gross Margin 15,000 i Net Income 10,000 Selling & Admin expense=h-i= 5,000
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