gnmentsessionLocatorassignmenttakeinpr M eBook Show Me How C

gnmentsessionLocator=assignment-take&inpr; M eBook Show Me How Calculator Cost Flow Relationships The following information is available for the first year of operations of Engle Inc., a manufacturer of fabricating equipment: Sales Gross profit Indirect labor Indirect materials $1,051,400 283,900 94,600 38,900 17,900 536,200 1,160,700 38,900 Other factory overhead Materials purchased Total manufacturing costs for the period Materials inventory, end of period Factory overhead was applied during the year. Using the above information, determine the following missing amounts: a. Cost of goods sold b. Direct materials cost c. Direct labor cost 11PM

Solution

a) Cost of goods sold = Net sales - gross profit

Cost of goods sold = $ 1,051,400 - $ 283,900

Cost of goods sold = $ 767,500

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b) Total manufacturing costs for the period = Direct materials + Direct labor + factory overhead

Direct materials cost = Materials purchased - materials inventory end of period

Direct materials cost = $ 536,200 - $ 38,900

Direct materials cost = $ 497,300

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C) Direct labor cost = Total manufacturing costs for the period - direct materials - factory overhead

Direct labor cost = $ 1,160,700 - $ 497,300- $ 17,900

Direct labor cost = $ 645,500