The following information is available for the first month of operations of Baha

Question

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 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 $278,820 162,550 139,410 60,500 9,200 85,880 160,320 11,430 c. Direct materials cost d. Direct labor cost e. Work in process inventory at the end of the month

Explanation / Answer

Answer of Part a:
Cost of Goods Sold = Sales - Gross Profit
Cost of Goods Sold = $278,820 - $162,550
Cost of Goods Sold = $116,270
Answer of Part b:
Ending Finished Goods Inventory = Cost of Goods Manufactured - Cost of Goods Sold
Ending Finished Goods Inventory = $139,410 - $116,270
Ending Finished Goods Inventory = $23,140
Answer of Part c:
Direct Material = Materials Purchased - Material Inventory, Ending
Direct Material = $85,880 - $11,430
Direct Material = $74,450
Answer of Part D:
Factory Overhead = Indirect Labor + Factory Depreciation
Factory Overhead = $60,500 + $9,200
Factory Overhead = $69,700
Direct Labor Cost = Total Manufacturing Costs - Direct Materials - Factory Overhead
Direct Labor Cost = $160,320 - $74,450 - $69,700
Direct Labor Cost = $16,170
Answer of Part E:
Ending Work in Process Inventory = Total Manufacturing Costs - Cost of Goods Manufactured
Ending Work in Process Inventory = $160,320 - $139,410
Ending Work in Process Inventory = $20,910

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