Question

The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils:

Sales $449,330
Gross profit 261,960
Cost of goods manufactured 224,670
Indirect labor 97,500
Factory depreciation 14,830
Materials purchased 138,390
Total manufacturing costs for the period 258,360
Materials inventory, ending 18,420

Using the information given, determine the following missing amounts:

a. Cost of goods sold
b. Finished goods inventory at the end of the month
c. Direct materials cost
d. Direct labor cost
e. Work in process inventory at the end of the month

Answer 1

Answer:

COGS = 187,370‬

ending finished goods = 37,300

Direct Materials used  =  119,970

Labor =    26,070

ending WIP  =  33,690

Explanation:

Sales - COGS = gross Profit

449,330 - COGS = 261,960

449,330 - 261,960 = COGS = 187,370‬

Cost of goods manufactured 224,670

less Cost of Goods Sold of    (187,370)

ending finished goods            37,300

Materials purchased            138,390

Materials inventory, ending (18,420)

Direct Materials used            119,970

Materials + Labor + Overhead = COGM

119,970 + Labor + 97,500 + 14,820 = 258,360

Labor = 258,360 - 232,290

Labor =    26,070

Then Cost added less Cost of Goods Manufacured = ending WIP

258,360 - 224,670 = 33,690

Answer 2

Answer:

COGS = 187,370‬

ending finished goods = 37,300

Direct Materials used  =  119,970

Labor =    26,070

ending WIP  =  33,690

Explanation:

Gross Profit = Sales - COGS

449,330 - 261,960 = COGS = 187,370‬

Cost of goods manufactured 224,670

less Cost of Goods Sold of    (187,370)

ending finished goods            37,300

Materials purchased            138,390

Materials inventory, ending (18,420)

Direct Materials used            119,970

Materials + Labor + Overhead = COGM

119,970 + Labor + 97,500 + 14,820 = 258,360

Labor = 258,360 - 232,290

Labor =    26,070

Then Cost added less Cost of Goods Manufacured = ending WIP

258,360 - 224,670 = 33,690