Statement of Cost of Goods Manufactured from Percent Relationships Information a

Question

Statement of Cost of Goods
Manufactured from Percent Relationships
Information about NuWay Products Company for the year ending December 31, 2010, follows:

Sales equal $500,000.

Direct materials used total $56,000.

Manufacturing overhead is 150 percent of direct labor dollars.

The beginning inventory of finished goods is 20 percent of the cost of goods sold.

The ending inventory of finished goods is twice the beginning inventory.

The gross profit is 20 percent of sales.

There is no beginning or ending work-in-process.

Finished goods, 12/31/10?

Explanation / Answer

Sales                              5,00,000 Cost of goods sold 500,000*80% = 400,000 Beginning Inventory 400,000*20% = 80,000 Ending inventory 80,000*2 = 160,000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.