Bravo Company provides you with the following information from its accounting records for the most recent year:
Direct materials purchased .....................................................$180,000
Work-in-process (beginning inventory)....................................... $50,000
Direct materials (beginning inventory)........................................ $25,000
Finished goods (beginning inventory)......................................... $75,000
Finished goods (ending inventory) .............................................$50,000
Manufacturing overhead costs.............................. 40% of conversion costs
Revenues .........................................................................$500,000
Direct labor...................................................................... $150,000
Prime costs....................................................................... $265,000
Gross margin percentage (gross margin as a % of revenues)................... 25%
Required:
Calculate:
a. Cost of goods sold.
b. Cost of goods manufactured.
c. Manufacturing overhead costs.
d. The cost of materials used in production.
e. The ending balance in work-in-process (WIP) inventory.