During the year the company purchased 135000 of direct mater

During the year, the company purchased $135,000 of direct materials and incurred $22,000 of direct labor costs. Total manufacturing overhead costs for the year amounted to $19,000. Selling and administrative expenses amounted to $30,000, and the companys annual sales amounted to $280,000.

Solution

we are given

direct materials cost =$135,000

direct labor costs =$22,000

Total manufacturing=$19,000

Selling and administrative expenses =$30,000

now, we can find total cost

total cost =direct materials cost +direct labor costs +Total manufacturing+Selling and administrative expenses

total cost =$135,000+$22,000 +$19,000+$30,000

total cost =$206000

now, we are given annual sales amounted

annual sales amounted=$280,000

We can find profit

profit = total sale amount - total cost

profit = 280,000-206000

profit=$74000.................Answer