CPA-Skilz Company creates, produces, and sells CD-ROM-based CPA review courses for individual use. Susan Wayans, head of human resources, is convinced that question development employees must have strong analytical and problem-solving, skills. She asked Jeremy Slater, controller for CPA-Skilz, to help develop problems to help screen applicants before they are interviewed. One of the problems Jeremy developed is based on the following data for a mythical company for the previous year:

Required:
1. Calculate the cost of goods manufactured for the previous year.
2. Calculate the cost of goods sold for the previous year.LO1

Transcribed Image Text:

a. Conversion cost was $360,000 and was four times the prime cost. b. Direct materials used in production equaled $75,000. c. Cost of goods manufactured was $415,000. d. Beginning work in process is one-half the cost of ending work in process. C. There are no beginning or ending inventories for direct materials. Cost of goods sold was 80 percent of cost of goods manufactured. g. Beginning finished goods inventory was $14,400. f. 915