Question

The following information pertains to Zillow Manufacturing Company for year 2019. Sales revenue $ 1.800.000 1.200.000 250.000 162.000 Cost of goods manufactured Direct manufacturing labor Administrative salaries Sales commissions Sales salaries Materials handling Indirect manufacturing labor Advertising expense Coolants & lubricants - factory 35,000 equipment Repairs and maintenance of factory | 45,000 Utilities of which $54,000 was for factory 65.000 Leasing costs - factory equipment 50.000 Depreciation factory equipment Depreciation office equipment 21.600 Fire insurance = factory equipment 6.000 Property taxes factory equipment 18.000 Depreciation factory building 15.000 135,000 81.000 18.000 69,000 34.000 Finished Goods Inventory. 88.000

compute cost ok f goods manufactured during the year.
b- compute operating income ( income from operations) for the year.
c- compute cost of direct materials used during the year.
d- compute cost of goods sold during the year.
please send me the answers.
thanks.

Answer 1

a) Cost of goods manufactured already given in question. it is $1,200,000

b.

Sales Revenue	$    1,800,000
Less: Cost of goods sold	$ (1,176,000)
Less: Administrative salaries	$     (162,000)
Less: Sales commission	$     (135,000)
Less: Sales salaries	$        (81,000)
Less: Advertising expense	$        (34,000)
Less: Depreciation - office equipment	$        (21,600)
Less: utilities ($65,000-54,000)	$        (11,000)
Operating income	$        190,400

c.

Cost of goods manufactured		$   1,200,000
Add: Ending work in process inventory		$        77,000
Less: Beginning work in process inventory		$    (150,000)
Less: Direct labor		$    (250,000)
Less: Manufacturing overheads
Materials handling	$ (18,000)
Inidrect manufacturing labor	$ (69,000)
Coolants and lubricants	$ (35,000)
Repairs and maintenance of factory	$ (45,000)
Utilities	$ (54,000)
Leasing cost	$ (50,000)
Depreciation - Factory equipment	$ (24,000)
Fire insurance	$    (6,000)
Property taxes	$ (18,000)
Depreciation - Factory building	$ (15,000)
Total manufacturing overhead		$    (334,000)
Direct material used		$      543,000

d.

Cost of goods manufactured	$   1,200,000
Add: Beginning finished goods inventory	$        88,000
Less: Ending finished goods inventory	$    (112,000)
Cost of goods sold	$   1,176,000