During the year, the company purchased $135,000 of direct materials and incurred
ID: 3416460 • Letter: D
Question
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.
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.
Explanation / Answer
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
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