PROBLEM 2, Use the following information to answer the questions: Stern Corporat

Question

PROBLEM 2, Use the following information to answer the questions: Stern Corporation reposts the following information for the month of June: Raw materials Work in process Finished goods Beginning $39,000 $24,000 $28,000 Ending $32,000 $23,000 $30,000 Sales Raw material purchases Direct labor costs Manufacturing overhead costs Selling expenses Administrative expenses $250,000 $50,000 $44,000 $71,000 $21,000 $27,000 what were total manufacturing costs for June? a. b. c. d. e. How much were direct materials costs for June? What was the cost of goods manufactured in June? What was the cost of goods sold in June? What was net operating income for June?

Explanation / Answer

a)Raw material used : Beginning +purchase -ending

= 39000+50000-32000

= 57000

Total manufacturing cost =direct material +direct labor +overhead

57000+44000+71000

172000

b)Direct ,material cost for june : 57000

c)cost of goods manufactured =beginning WIP+total manufacturing cost -ending WIP

= 24000+172000-23000

= 173000

D)cost of goods sold =beginning finished goods+ cost of goods manufactured- ending FG

28000+173000-30000

= 171000

E)Net operating income =sales -Cost of goods sold-selling and administrative expense

250000-171000-21000-27000

31000

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