Problem:
The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year.
|
Sales
|
$1,980
|
|
Selling expenses
|
280
|
|
Manufacturing overhead
|
460
|
|
Direct labor
|
400
|
|
Administrative expenses
|
300
|
|
Purchases of raw materials
|
240
|
|
Finished goods inventory, beginning
|
240
|
|
Finished goods inventory, ending
|
320
|
|
Raw materials inventory, beginning
|
80
|
|
Raw materials inventory, ending
|
140
|
|
Work in process inventory, beginning
|
140
|
|
Work in process inventory, ending
|
100
|
Required: (Present all reports and calculations in thousands of dollars)
Question 1: What was the cost of the raw materials used in production during the year?
Question 2: What was the cost of goods manufactured (finished) for the year?
Question 3: What was the cost of goods sold for the year?
Question 4: What was the net income for the year?
Note: Be sure to show how you arrived at your answer.