(Journal entries) Debonaire Clothiers Inc. produces men’s suits. The following information has been gathered from the company records for 1998, the first year of company operations. Work in Process Inventory at the end of 1998 was $24,800.

The company’s gross profit rate for the year was 35 percent.

a. Compute the cost of goods sold for 1998.

b. What was the total cost of goods manufactured for 1998?

c. If net income was $50,295, what were total selling and administrative ex¬ penses for the year?

d. Prepare journal entries to record the flow of costs for the year, assuming the company uses a perpetual inventory system.LO1

Transcribed Image Text:

Direct material purchased on account Direct material issued to production Direct labor payroll accrued $330,000 294,000 215,000 Indirect labor payroll paid 62,000 Factory insurance expired 2,500 Factory utilities paid 14,300 Depreciation on factory equipment recorded 21,700 Factory rent paid 84,000 Sales made on account 958,000