Question

Question 1 2 pts X Company has the following information: $275,000 54,000 17,000 3,000 Accounts Receivable Advertising Expense Depreciation-Factory Equipment Depreciation Office Equipment Factory Insurance Expense Factory Supplies used Factory Utilities Finished Goods 1-1-17 Finished Goods 12-31- 4,000 10,000 11,000 70,000 80,000 17 48,000 2,000 280,000 53,000 38,000 185,000 Indirect Labor Office Supplies Expense Other Administrative Expenses Raw Materials 1-1-17 Raw Materials 12-31-17 Raw Materials Purchased Repairs-Factory Equipment Sales Salaries Sales Revenue Wages of machine operators Work in Process 1-1-17 Work in Process 12-31- 50,000 165,000 1,000,000 42,000 51,000 43,000 Compute cost of direct materials used. Do not enter any dollar signs or commas. For example enter $325,000 as 325000.

Answer 1

1.

Beginning Raw material inventory	$          53,000
Add: material purchased	$        185,000
Material available for production	$        238,000
Less: Ending raw material inventory	$        (38,000)
Material used	$        200,000

2.

Direct material		$ 200,000
Direct labour		$    42,000
Manufacturing overhead
Depreciation - factory equipment	$ 17,000
Factory insurance expense	$    4,000
Factory supplies used	$ 10,000
Factory utilities	$ 11,000
Indirect labour	$ 48,000
Repairs - Factory equipment	$ 50,000
Total manufacturing overhead		$ 140,000
Total production cost		$ 382,000
Add: Beginning work in process		$    51,000
Less: Ending work in process		$ (43,000)
Cost of goods manufactured		$ 390,000

3.

Cost of goods manufactured	$        390,000
Add: Beginning finished goods inventory	$          70,000
Less: Ending finished goods inventory	$        (80,000)
Cost of goods sold	$        380,000

4.

Sales revenue	$ 1,000,000
Less: Cost of goods sold	$   (380,000)
Gross profit	$     620,000

5.

Advertising expenses	$    54,000
Depreciation - Office equipment	$      3,000
Office supplies expenses	$      2,000
Other administrative expenses	$ 280,000
Sales salaries	$ 165,000
Total operating expenses	$ 504,000

6.

Gross profit	$   620,000
Less: Operating expenses	$ (504,000)
Net income	$   116,000