Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a company manufactures jackets and provided you wi

A company manufactures jackets and provided you with the following production info for the period: Beginning balance...

Free

90.2K

Verified Solution

Question

Accounting

A company manufactures jackets and provided you with thefollowing production info for the period:

Beginning balance finished goods............ $120,000

Beginning balance work-in-process.......... $35,000

Beginning balance in raw materials.......... $18

Ending balance in finished goods............. $105,000

Ending balance work-in process............... $37,500

Ending balance raw materials................... $128

Cost of goods manufactured..................... $ 147,500

Manufacturing costs...................................$150,000

Manufacturing overhead............................ $25,000

Direct labor................................................$55,000

A. How much raw material was used during the period?

B. What was the gross margin at the end of the period if thecompany spent $12,500 on advertising and had sales of $360,000?

Answer & Explanation Solved by verified expert
4.0 Ratings (567 Votes)

A Manufacturing Cost $150,000
B Direct labor $55,000
C Manufactring Overhead $25,000
D=A-B-C Raw materials used $70,000
FINISHED GOODS INVENTORY
Debit Credit
Beginning balance $120,000
Cost of goods manufactured $147,500
Cost of goods sold $162,500 (120000+147500-105000)
Ending Balance $105,000
WORK IN PROCESS INVENTORY
Debit Credit
Beginning balance $35,000
Direct Labor $55,000
Manufacturing Overhead $25,000
RawMaterials $        70,000 (150000-55000-25000)
Cost of goods manufactured $147,500
Ending Balance $37,500
RAW MATERIAL INVENTORY
Debit Credit
Beginning balance $18
Raw materials purchased $        70,110 (70000+128-18)
Raw materialsused $ 70,000
Ending Balance $128
A Raw Materials Used $        70,000
B Gross Margin
a Saless $360,000
b Cost of goods sold $162,500
c Advertising expense $12,500
d=b+c Total expense $175,000
e=a-d Gross Margin $185,000

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Which of the following is NOT a part of photosynthesis A Photolyses C Oxidative phosphorylation...

Biology
Q

49 Four identical cells each having emf E and internal resistance r are connected in...

Physics
Q

A body is at rest at x 0 At t 0 it starts moving in...

Physics
Q

Maximize z s t 8X1 4X2 X1 4X1 X1 2x2 3x2 382 6x3 3x3 2x3...

Basic Math
Q

The flight of a cannonball toward a hill is described by the parabola y 2...

Basic Math
Q

The graph to the right is the result of applying a sequence of transformations to...

Basic Math
Q

11 What Music Will You Play People often match their behavior to their social environment...

Statistics
Q

Complete the following sentence. Debentures in the form of loans) are considered a...

Accounting
Q

Ivanhoe Corporation sells a single produd for $40. Its management estimates the following revenues and...

Accounting
Q

Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash...

Accounting
Q

As an auditor, describe the procedures that you consider to be appropriate to perform during...

Accounting
Q

A company reports the following contribution margin income statement. Contribution Margin Income Statement For Year...

Accounting