1.6

Cost Flow Relationships The following information is available for the first month of operations of Lane Inc., a manufacturer of mechanical pencils: Sales $437,840 Gross profit 255,260 Indirect labor 95,010 Indirect materials 47,510 Other factory overhead 14,450 Materials purchased 134,850 Total manufacturing costs for the period 251,760 Materials inventory, end of period 17,950 Using the above information, determine the following: a. Cost of goods sold: " b. Direct materials cost: " c. Direct labor cost