Question

Using the information below, calculate gross profit for the period. Beginning Raw Materials Inventory $28,000 nd ing Direct Materials Inventory $33,000 |Beginning Work in Process Inventory $61.00 nding Work in Process Inventory $70,000 Beginning Finished Goods Inventory $86,000 $73,00 Cost of Goods Sold for the period $570,000 $1,314.00 Operating expenses for the period $262.000 ( ?129:45) nding Finished Goods Inventory Sales revenues for the period Multiple Choice $744,000 $482000 $1,052000 $131,000. $757000

Answer 1

1. $744,000

Sales Revenue	$ 1,314,000
Less:cost of Goods Sold	$     570,000
Gross Margin	$     744,000

2. $685,000

Direct Material	$     300,000
Add: Direct Labour	$     133,500
Add: Factory Overhead	$     265,500
Transferred to WIP	$     699,000
Add: Beginning WIP	$     120,000
Less: Ending WIP	$   (127,400)
Transferred to Finished Goods	$     691,600
Add: Beginning Finished Goods	$     233,600
Less: Ending Finished Goods	$   (240,200)
Cost of Goods Sold	$     685,000

3. $3,024,000

Prime Cost	$ 4,518,000
Less: Direct Material	$ 2,022,000
Direct Labour Cost	$ 2,496,000

Conversion Cost	$ 5,520,000
Less:Direct Labour Cost	$ 2,496,000
Overhead	$ 3,024,000

Prime Cost= Direct Material + Direct Labour

Conversion cost= Direct Labour+Overhead

4. $ 893,000

Direct Material	$ 351,000
Add: Direct Labour	$ 217,000
Add: Factory Overhead	$ 320,000
Transferred to WIP	$ 888,000
Add: Beginning WIP	$    61,000
Less: Ending WIP	$ (56,000)
Cost of goods Manufactured	$ 893,000

5. Gross Profit - $643,800 , Net Income - $ 413,800

Cost of goods Manufactured	$     495,000
Add: Beginning Finished Goods	$        35,100
Less: Ending Finished Goods	$        40,100
Cost of Goods Sold	$     570,200

Sales	$ 1,214,000
Less: Cost of Goods Sold	$     570,200
Gross Margin	$     643,800
Operating Expesnes	$     230,000
Net Income	$     413,800

Please note that for Question 5 , the answer for Gross Margin will be 643,800 but no option given in the question.

Dear Student,

Best effort has been made to give quality and correct answer. But if you find any issues please comment your concern. I will definitely resolve your query.