Just before class starts, you realize that you have mistakenly recycled the seco

Question

Just before class starts, you realize that you have mistakenly recycled the second page of your cost accounting homework assignment. Fortunately, you still have the first page of the printout from your spreadsheet (shown below) and you remember that you were able to determine the items on the recycled page from this information. 1 Direct materials inventory, January 1 2 Direct materials inventory, December 31 3 Work-in-process inventory, January 1 4 Work-in-process inventory, December 31 5 Finished goods inventory, January 6 Finished goods inventory, December 3 7 Cost 8 Total manufact $ 2,520 2,088 5,440 6,110 22,320 38.770 611,650 612,320 270,400 225.000 18 38% t of goods manufactured during this vear costs Direct labor 10 Manufacturing overhead 11 Average selling price per unit 12 Gross margin percentage (as a percentage of sales) Required Find the following a. Cost of goods sold. b. Direct materials used c. Purchases of direct materials. d. Sales revenue

Explanation / Answer

a) Cost of goods sold = 22320+611650-38770 = 595200

b) Direct material used = 612320-270400-225000 = 116920

c) Purchase of direct material = 2088+116920-2520 = 116488

d) Sales revenue = 595200*100/62 = 960000

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