The following data pertain to Duggan Companys operations dur

The following data pertain to Duggan Company\'s operations during December Dec Dec OS10,000 Raw materials inventory Work-in-process inventory $5,000 Finished goods inventory $100007 Other data Cost of goods manufactured $95,000 Raw materials used Manufacturing overhead costs S 20000 Direct labour costs Gross profit Sales S 50,000 S 30,000 $110,000 5200,000 Please copy and paste the format below and include in your assignment, highlighting/bolding your final answer for each part: Required 1. What amount of raw materials was purchased? 2. What were the total manufacturing costs? . What was the beginning work-in-process in inventory? 4. What was the cost of goods manufactured transferred to finished goods? 5. What was the ending finished goods inventory? 6. How much was cost of goods sold? MUST SHOW ALL WORK FOR ALL PARTS IN ORDER TO RECEIVE ALL MARKS) King Wa Restaurant would like to estimate the variable and fixed components of its utilities costs and has compiled the following data of operations.

Solution

Answer 1.

Raw Materials used = Raw Materials Inventory, Dec. 1 + Raw Materials Purchased - Raw Materials Inventory, Dec. 31
$50,000 = $0 + Raw Materials Purchased - $10,000
Raw Materials Purchased = $60,000

Answer 2.

Total Manufacturing Costs = Raw Materials used + Direct Labour Cost + Manufacturing Overhead Costs
Total Manufacturing Costs = $50,000 + $30,000 + $20,000
Total Manufacturing Costs = $100,000

Answer 3.

Cost of Goods Manufactured = Work-in Process Inventory, Dec. 1 + Total Manufacturing Costs - Work-in Process Inventory, Dec. 31
$95,000 = Work-in Process Inventory, Dec. 1 + $100,000 - $5,000
Work-in Process Inventory, Dec. 1 = $0

Answer 4.

Cost of Goods Manufactured transferred to Finished Goods = $95,000

Answer 5.

Gross Profit = Sales - Cost of Goods Sold
$110,000 = $200,000 - Cost of Goods Sold
Cost of Goods Sold = $90,000

Cost of Goods Sold = Finished Goods Inventory, Dec. 1 + Cost of Goods Manufactured - Finished Goods Inventory, Dec. 31
$90,000 = $10,000 + $95,000 - Finished Goods Inventory, Dec. 31
Finished Goods Inventory, Dec. 31 = $15,000

Answer 6.

Gross Profit = Sales - Cost of Goods Sold
$110,000 = $200,000 - Cost of Goods Sold
Cost of Goods Sold = $90,000