The following cost data relate to the manufacturing activities for the company: ...
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Accounting
The following cost data relate to the manufacturing activities for the company:
Finished goods Inventory, Beginning
$18,000
Finished goods Inventory, ending
$12,750
Administrative expenses
$20,000
Manufacturing overhead cost incurred
$48,000
Purchase of raw materials
$32,000
Raw materials inventory, beginning
$8,000
Raw materials inventory, ending
$7,000
Direct labor cost
$40,000
Work in progress, beginning
$6,000
Work in progress inventory, ending
$7,500
Sales
$350,000
Selling expenses
$35,000
The company uses a predetermined overhead rate of to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,000 machine hours was recorded for the year. All raw materials ultimately become direct materials-none are classified as indirect materials.
Calculate the following:
1. Raw materials used in production
2. Manufactured Overhead applied
3. Total manufacturing cost
4. Cost of goods manufactured
5. Unadjusted Cost of goods sold
6. Adjusted Cost of Goods Sold
7. Gross margin
8. Net operating income
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