1. Computation of Total Manufacturing Cost , Cost of Goods Manufactured and Cost of Goods Sold . During the past year , the Rocco Company incurred these costs : direct labor , $2,500,000 ; factory overhead , $4,000,000 ; and direct materials purchases , $1,500,000 Inventories were costed as follows : Beginning Ending Finished goods $250,000 $300,000 Work in process 450,000 550,000 Materials .... 75,000 125,000 Required : (1) ....... Calculate total manufacturing cost for the year (2) Calculate the cost of goods manufactured for the year (3) Calculate the cost of goods sold for the year . 2. Journal Entries for the Cost Accounting Cycle . On January 1, the ledger of the Phinney Furniture Company contained , among other accounts , the following : Finished Goods $25,000 ; Work in Process , $30,000 ; Materials , $15,000 . During January , the following transactions were completed : (a) Materials were purchased at a cost of $28,000 (b) Direct materials in the amount of $21,000 were issued from the storeroom (c) Storeroom requisitions for indirect materials and supplies amounted to $3,200 . (d) The total payroll for January amounted to $31,000 , including marketing salaries of $7,500 and administrative salaries of $5,500 . Labor time tickets show that $15,500 of the labor cost was direct labor . (e) Various factory overhead costs were incurred for $12,000 on account (f) Total factory overhead is charged to the work in process account (g) Cost of production completed in January totaled $58,000 , and finished goods in the shipping room on January 31 totaled $18,000