Question

Cost Flow Relationships

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

Cost Flow Relationships The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils: Sales Gross profit Cost of goods manufactured Indirect labor Factory depreciation Materials purchased Total manufacturing costs for the period Materials inventory, ending Using the above information, 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 $319,940 186,530 159,970 69,430 10,560 98,540 183,970 13,120

Answer 1

a)

Sales	$   319,940
Less: Gross profit	$ (186,530)
Cost of goods sold	$   133,410

b)

Cost of goods manufactured	$   159,970
Less: Cost of goods sold	$ (133,410)
Finished goods inventory at the end of month	$      26,560

c)

Materials purchased	$   98,540
Less: Material inventory, ending	$ (13,120)
Direct materials cost	$   85,420

d)

Total manufacturing cost	$ 183,970
Less: Direct materials cost	$ (85,420)
Less: indirect labor	$ (69,430)
Less: Factory depreciation	$ (10,560)
Direct labor	$    18,560

e)

Total manufacturing cost	$   183,970
Less: Cost of goods manufactured	$ (159,970)
Work in process inventory at the end of the month	$      24,000

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