4.43 Financial Statements for Manufacturing and Merchandising Companies Outdoor Equipment Company (MER) and Mountain Supplies, Inc. (MFG) both sell tents. MER purchases its tents from a manufacturer for $90 each and sells them for $120. It purchased 10,000 tents last year. MFG produces its own tents. Last year, MFG produced 10,000 tents. Costs were as follow $535,000 $520,000 260,000 Direct materials purchased Direct materials used Direct labor Indirect manufacturing: Depreciation Indirect labor Other Total cost of production $40,000 50,000 30,000 120.000 $900,000 Assume that MFG had no beginning inventory of direct materials. There was no beginning inventory of finished tents, but ending inventory consisted of 1,000 finished tents. Ending Work In process inventory was negligible. Each company sold 9,000 tents for $1,080,000 last year and incurred the following selling and administrative costs: Sales salaries and commissions Depreciation on retail store Advertising Other Total selling and administrative cost S 90,000 30,000 20,000 10,000 S150,000 Sales salanes and com Depreciation on retails Advertising Other Total selling and admin Required 1. Determine MER's Merchandise Inventory closing balance. Submit Answer Tries 0/99 2. Determine MFG's Material Inventory closing balance. Submit Answer Tries 0/99 3. Determine MFG's Finished Goods Inventory closing balance. Submit Answer Tries 0/99 4. Determine MER's profit for the year. 120000 You are correct. Submissions to practice problems are not permanently recorded. 5. Determine MFG's profit for the year. Submit Answer Tries 0/99 Previous Tries Threaded View Chronological View Export Other Views