Problem
Owen Stores produces dresses. During the current year, the company incurred the following costs:
|
Factory rent
|
$ 129,000
|
|
|
Direct labor used
|
$ 420,000
|
|
|
Factory utilities
|
$ 100,000
|
|
|
Direct materials purchases
|
$ 725,000
|
|
|
Indirect materials
|
$ 102,000
|
|
|
Indirect labor
|
$ 77,000
|
|
|
Inventories for the year were:
|
|
|
|
|
January 1
|
December 31
|
|
Direct materials
|
$ 250,000
|
$ 145,000
|
|
Work in process
|
$ 150,000
|
$ 136,000
|
|
Finished goods
|
$ 300,000
|
$ 290,000
|
1. Calculate Cost of Good Manufactured.
2. Calculate Cost of Goods Sold.