Problem: Selected data concerning the past year's operations of the Lone Star Leather Company are as follows:
Inventories Beginning Ending
Raw Material 142,000 162,000
Work in Process 160,000 60,000
Finished Goods 180,000 220,000
Other Data:
Direct Material Used 652,000
Total manufacturing costs charged to
production during the year (includes direct
material, direct labor, and manufacturing overhead
applied at a rate of 60% of direct-labor cost) 1,372,000
Cost of goods available for sale 1,652,000
Selling and administrative expenses 63,000
Q1. What was the direct-labor cost charged to production during the year?
Q2. What was the cost of goods manufactured during the year?
Q3. What was the cost of goods sold during the year?