Problem
Taylor's Construction Co. lost some of its financial records. However, the following information is available:
|
Cost of goods sold
|
$ 60,000
|
|
Work in process, Jan 1
|
$ 17,500
|
|
Work in process, Dec 31
|
$ 13,500
|
|
Selling & admin expenses
|
$ 15,000
|
|
Net income
|
$ 25,000
|
|
Factory overhead
|
$ 15,000
|
|
Direct materials inventory, Jan 1
|
$ 17,000
|
|
Direct materials inventory, Dec 31
|
$ 13,000
|
|
Cost goods manufactured
|
$ 89,000
|
|
Finished goods inventory, Jan 1
|
$ 22,000
|
Direct labor cost incurred during the period was 2.5 times factory overhead.
Assume there are no income taxes. Yay!
Required:
Calculate the following:
1. Direct labor used
2. Direct materials used
3. Total manufacturing costs
4. Direct materials purchased
5. Finished goods inventory, Dec 31
6. Net Sales
7. Gross Profit or Gross Margin.