Comm 1102 Assign1 Question1 Use the following information to

Comm 1102 Assign#1 Question#1 Use the following information to determine the gross margin for Intel Manufacturing for the year just ended (all amounts are in thousands (S 000\'s) of dollars: Accounts payable, 1/1 1,700 Accounts payable, 12/31 ,500 Depreciation on factory equipment 2,500 Direct labor 8,000 Direct materials inventory, 1/ 8,000 Direct materials inventory, 12/31 1,000 Finished goods inventory, 1/120,000 Finished goods inventory, 12/31 21,300 Indirect labor 1.600 Indirect materials used 500 Purchases of direct materials 8,000 Sales S21,800 Utilities expense, factory 900 Work in process inventory, 1/1 ,800 Work in process inventory, 12/3 10,000 NSWER (MUST SHOW ALL WORK IN ORDER TO RECEIVE ALL MARKS): Question# 2. he following data ( have been taken from the accounting records of DAVISON Corporation for the just completed year. Administrative expenses S10 Direct labor $140 Finished goods inventory, beginning S170 Finished gods emory chom 3160

Solution

Calculate cost of goods manufactured :

Calculate gross margin :

Beginning work in process			1800
Beginning raw material inventory	8000
raw material purchase	8000
Ending raw material inventory	(1000)	15000
Direct labour		8000
Factory overhead
Depreciation on factory equipment	2500
Indirect labour	1600
Indirect material	1500
Utilities exp	900	6500
Total manufacturing cost			29500
			31300
Less: Ending work in process			(10000)
Cost of goods manufactured			21300