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Company Inventory Info ITEM 1/1/2020 12/31/2020 RAW MATERIALS $34K $38K WIP $126K $145K FINISHED GOODS $76K $68K COSTS INCURRED DURING THE YEAR 2020: RAW MATERIAL PURCHASED $232K WAGES TO FACTORY WORKERS 55K SALARY...

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Accounting

Company Inventory Info
ITEM1/1/202012/31/2020
RAW MATERIALS$34K$38K
WIP$126K$145K
FINISHED GOODS$76K$68K

COSTS INCURRED DURING THE YEAR 2020:

RAW MATERIAL PURCHASED$232K

WAGES TO FACTORY WORKERS

55K
SALARY TO FACTORY SUPERVISORS25K
SALARY TO SELLING AND ADMIN STAFF80K
DEPRECIATION ON FACTORY BLDG AND EQUIP20K
DEPRECIATION ON OFFICE BLDG24K
UTILITIES FOR FACTORY BLDG$10K
UTILITIES FOR OFFICE BLDG7.5K

SALES REVENUE DURING 2020 WAS $600K. THE TAX RATE=21%

CALCULATE:

1. COST OF RAW MATERIALS USED

2. COST OF GOODS MANUFACTURED/COMPLETED

3. COST OF GOODS SOLD

4. GROSS MARGIN

5. NET INCOME

Answer & Explanation Solved by verified expert
3.9 Ratings (506 Votes)
1 Calculation of Direct Materials Used Raw materials inventory beginning 34000 AddDirect materials purchases 232000 Raw Material available for use 266000 LessEnding raw material inventory 38000 Raw material used 228000 COST OF RAW MATERIALS USED 228000 2 Calculation of Cost of Goods Manufactured Direct    See Answer
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Transcribed Image Text

Company Inventory InfoITEM1/1/202012/31/2020RAW MATERIALS$34K$38KWIP$126K$145KFINISHED GOODS$76K$68KCOSTS INCURRED DURING THE YEAR 2020:RAW MATERIAL PURCHASED$232KWAGES TO FACTORY WORKERS55KSALARY TO FACTORY SUPERVISORS25KSALARY TO SELLING AND ADMIN STAFF80KDEPRECIATION ON FACTORY BLDG AND EQUIP20KDEPRECIATION ON OFFICE BLDG24KUTILITIES FOR FACTORY BLDG$10KUTILITIES FOR OFFICE BLDG7.5KSALES REVENUE DURING 2020 WAS $600K. THE TAX RATE=21%CALCULATE:1. COST OF RAW MATERIALS USED2. COST OF GOODS MANUFACTURED/COMPLETED3. COST OF GOODS SOLD4. GROSS MARGIN5. NET INCOME

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