eBook Show Me How Calculator Cost Flow Relationships The fol

eBook Show Me How Calculator Cost Flow Relationships The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils: Sales Gross profit Cost of goods manufactured Indirect labor Factory depreciation Materials purchased Total manufacturing costs for the period $792,000 462,000 396,000 171,600 26,400 244,200 455,400 33,000 Materials inventory, ending Using the above information, determine the following missing amounts a. Cost of goods sold b. Finished goods inventory at the end of the month c. Direct materials cost d. Direct labor cost e. Work in process inventory at the end of the month 2:36 PM 1/15/2018

Solution

a. COGS = Sales - GP = $ 792,000 - $ 462,000 = $ 330,000

b. Finished Goods Inventory = Cost of Goods Manufactured Less Cost of Goods Sold

$ 396,000 - $ 330,000 = $ 66,000

c. Direct Materials Cost = Direct Materials Purchased Less Materials Inventory

$ 244,200 - $ 33,000 = $ 211,200

d. Work in Process Inventory = Manufacturing Costs less Cost of Goods Manufactured

$ 455,400 - $ 396,000 = $ 59,400

e. Direct Labor = Manufacturing Costs Less Direct Materials Less Overhead

= $ 455,400 - $ 211,200 - $ 171,600 - $ 26,400 = $ 46,200