DeeZees makes evening dresses. The following information was gathered from the company records for the year, the first year of company operations. Work in Process Inventory at the end of the year was $6,300. Direct material purchased on account $222,000 Direct material issued to production 178,800 Direct labor payroll accrued 129,000 Indirect labor payroll accrued 37,200 Prepaid factory insurance expired 1,200 Factory utilities paid 8,580 Depreciation on factory equipment recorded 13,020 Factory rent paid 50,400 Sales (all on account) 572,400 The company’s gross profit rate for the year was 35 percent. a. Compute the cost of goods sold for the year. $Answer b. What was the total cost of goods manufactured for the year? $Answer c. What is Finished Goods Inventory at December 31? $Answer
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DeeZees makes evening dresses. The following information was gathered from the company records for the year, the first year of company operations. Work in Process Inventory at the end of the year was $6,300.
| Direct material purchased on account | $222,000 | |
| Direct material issued to production | 178,800 | |
| Direct labor payroll accrued | 129,000 | |
| Indirect labor payroll accrued | 37,200 | |
| Prepaid factory insurance expired | 1,200 | |
| Factory utilities paid | 8,580 | |
| 13,020 | ||
| Factory rent paid | 50,400 | |
| Sales (all on account) | 572,400 |
The company’s gross profit rate for the year was 35 percent.
a. Compute the cost of goods sold for the year. $Answer
b. What was the total cost of goods manufactured for the year? $Answer
c. What is Finished Goods Inventory at December 31? $Answer
d. If net income was $50,000, what were total selling and administrative expenses for the year? $Answer
e. Prepare journal entries to record the flow of costs for the year, assuming the company uses a perpetual inventory system and a single Manufacturing
Note: Assume all raw material purchases and selling and administrative expenses are on account.
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