The following information is available for the first month of opera $3,600,000 6

Question

The following information is available for the first month of opera $3,600,000 650,000 216,000 120,000 45,000 1,224,000 Sales Gross proft Indirect labor Indirect materials Other factory overhead Materials purchased Total manufacturing costs for the period 2,640,000 Materials inventory, end of period Using this information, determine the following missing amounts: a. Cost of goods sold 2,950,000 b. Direct materials cost 1,005,200 c. Direct labor cost 98,800 Feedback Check My Work a. Sales minus the cost of goods sold equals the gross profit b. Materials purchased less the indirect materials and ending material Check My Work

Explanation / Answer

Calculate following :

Cost of goods sold = Sales-gross profit

                            = (3600000-650000)

Cost of goods sold = 2950000

Material cost = Material purchased-indirect material -ending inventory of material

                     = (1224000-120000-98800)

Material cost = 1005200

Direct labour cost :

Total manufacturing cost 2640000 Less: material cost (1005200) Less: Indirect material (120000) Less; indirect labour (216000) less: Other factory overhead (45000) Direct labour cost 1253800

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