Question

Dooard C18 Font IH ! 2. $. % Alignment 1 B Cost flow relationships Number The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: 5 DATA Sales Gross profit Indirect labor 9 Indirect materials Other factory overhead 11 Materials purchased 12 Total manufacturing costs for the period Materials inventory, end of period 10 $12,725,000 5,347,000 421,600 185,100 832.900 4.241,600 8,102,900 298,200 13 14 Using formulas and cell references, perform the required analysis, and input your answers into the Amount column. Transfer the numeric results for the green entry cells (C18, C20, C22) into the appropriate is fields in CNOW2 for grading 17

Answer 1

A) Cost of goods sold = Revenue - Gross profit

= 12,725,000 - 5,347,000 = $7,378,000

B) Direct material cost = Material purchased - ending material inventory

= 4,241,600 - 298,200 = $3,943,400

C) Direct labor cost = Total Manufacturing cost during the period - direct material cost - indirect material - indirect labor - other factory overhead

= 8,102,900 - 3,943,400 - 185,100 - 421,600 - 832,900

= $2,719,900