The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils:Sales                                                             $792,000Gross profit                                                     $462,000Cost of goods manufactured                           $396,000Indirect labor                                                  $171,600Factory depreciation                                       $26,400Materials purchased                                        $244,200Total manufacturing cost for the period         $455,400Materials inventory, ending                            $33,000Using the information given, determine the following missing amount:Cost of goods sold: Finished goods inventory at the end of the month: Direct materials cost: Direct labor cost: Work in process inventory at the end of the month:

Question
Asked Oct 30, 2019
  • The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils:
    • Sales                                                             $792,000

Gross profit                                                     $462,000

Cost of goods manufactured                           $396,000

Indirect labor                                                  $171,600

Factory depreciation                                       $26,400

Materials purchased                                        $244,200

Total manufacturing cost for the period         $455,400

Materials inventory, ending                            $33,000

  • Using the information given, determine the following missing amount:
    • Cost of goods sold: 
    • Finished goods inventory at the end of the month: 
    • Direct materials cost: 
    • Direct labor cost: 

Work in process inventory at the end of the month: 

check_circleExpert Solution
Step 1

Cost of goods sold has been calculated by taking the gross profit subtracted from the sales.

Compute the amount of Cost of goods sold using the given equation given below:
Cost of goods sold Sales - Gross profit
=$792,000-$462,000
=$330,000
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Compute the amount of Cost of goods sold using the given equation given below: Cost of goods sold Sales - Gross profit =$792,000-$462,000 =$330,000

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Step 2

Finished goods inventory at the end is calculated by taking cost of goods manufactured less cost of goods sold finished and resulting added by goods inventory at the beginning. Cost of goods sold calculated in step 1 that is $330,000.

Cost of goods manufactured -
Finished goods inventory at the end Cost of goods sold finished
Goods inventory at the beginning
=($396, 000-$330, 000 + 0)
=$66, 000
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Cost of goods manufactured - Finished goods inventory at the end Cost of goods sold finished Goods inventory at the beginning =($396, 000-$330, 000 + 0) =$66, 000

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Step 3

Direct material cost is calculated by taking material at the beginning added by...

Compute the amount of direct material cost by using the equation given below:
'Material at the beginning
Direct material cost =
+Material purchased - Raw material at the ending
0+$244,200-$33, 000
=$211,200
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Compute the amount of direct material cost by using the equation given below: 'Material at the beginning Direct material cost = +Material purchased - Raw material at the ending 0+$244,200-$33, 000 =$211,200

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