Presented below is selected information from the Access Company\'s current perio
ID: 2448771 • Letter: P
Question
Presented below is selected information from the Access Company's current period accounting
records in $000s:
Sales
$20,000
Raw Materials Used 5,000
Direct Labor Costs 2,000
Period Costs (Selling and Administrative) 5,000
Beginning Raw Material Inventory 600
Ending Raw Material Inventory 2,000
Net Income 400
Beginning Work-in-Process Inventory 0
Ending Work-in-Process Inventory 600
Beginning Finished Goods Inventory 1,400
Ending Finished Goods Inventory 800
Required:
Determine the following (in dollars):
a. Raw Material Purchases
b. Gross Profit
c. Cost of Goods Manufactured
d. Manufacturing Overhead
Explanation / Answer
Raw Material Purchase
Ending Raw Material
2000
Raw material used
5000
Less: begning raw material
600
Balance
6400
Cost of goods manfactured
Begning raw mterial
600
Raw material purchased
6400
Begning wip
0
Add: direct labour
2000
Less: ending raw material
2000
Less: ending wip
600
Balance
6400
Gross Profit
Sales
20000
Add: ending finished goods
800
Less: begning finished goods
1400
Less: cost of goods manufacured
6400
Gross Profit
13000
Less: selling & administrative exp
5000
Income
8000
Net income as per question
400
Manufacturing overhead
7600
Raw Material Purchase
Ending Raw Material
2000
Raw material used
5000
Less: begning raw material
600
Balance
6400
Cost of goods manfactured
Begning raw mterial
600
Raw material purchased
6400
Begning wip
0
Add: direct labour
2000
Less: ending raw material
2000
Less: ending wip
600
Balance
6400
Gross Profit
Sales
20000
Add: ending finished goods
800
Less: begning finished goods
1400
Less: cost of goods manufacured
6400
Gross Profit
13000
Less: selling & administrative exp
5000
Income
8000
Net income as per question
400
Manufacturing overhead
7600
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