Question

The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment:

Sales	$	12,105,000
Gross profit		5,086,500
Indirect labor		401,000
Indirect materials		176,100
Other factory overhead		792,300
Materials purchased		4,035,000
Total manufacturing costs for the period		7,708,100
Materials inventory, end of period		283,700

1. Determine the following amounts. Round your answers to the nearest dollar.

   1. Cost of goods sold

      $

   2. Direct materials cost

      $

   3. Direct labor cost

      $

Answer 1

Az ay Cost of Goode soldt Gross Profit = Sales Cast of Goods Sold Sales - Gross Profit vol = $ 1,21,05,000 - $50,866 $ 70,18,500 b> Direct Matoual Cast Opening Material + Material Purchake - Closing Material = $0 + $ 40,35,000-$2837 $ 37,5) 300

c) Direct Labor Cast - Total maunlacturing costs for the period - Direct Material Cost Indirect Materials - Other Factory Overheed $ 77,08,100 – $37,51,300 – $4,01,000 $ 1,76,100 - $ 7,92,300 $ 25,87 400