The following is extracted from the records of a manufacturing company for last year: £Sales600,000Inventory of direct materials as of 1st of January39,000Purchases of direct materials158,000Inventory of direct materials as of 31st of December19,000Direct manufacturing labour28,000Indirect manufacturing costs45,000Inventory of finished goods as of 1st of January47,000Cost of goods manufactured121,000Inventory of finished goods as of 31st of December33,000Selling and administrative costs119,000 What is the company’s operating income? a.£177,000 b.£95,000 c.£346,000 d.None of the above

we know that, cost of goods sold = Cost of goods manufactured + Opening stock of finished goods -…

Answered: The following is extracted from the…

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 2SEB: SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Sanchez Welding and...

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The following is extracted from the records of a manufacturing company for last year:

	£
Sales	600,000
Inventory of direct materials as of 1^st of January	39,000
Purchases of direct materials	158,000
Inventory of direct materials as of 31^st of December	19,000
Direct manufacturing labour	28,000
Indirect manufacturing costs	45,000
Inventory of finished goods as of 1^st of January	47,000
Cost of goods manufactured	121,000
Inventory of finished goods as of 31^st of December	33,000
Selling and administrative costs	119,000