Question
AAC, a manufacturer of lawn mowers, had the following inventory balances: Inventory Classification Raw materials Work in process Finished goods Jan 1, 2018 $55,000 110,000
AAC, a manufacturer of lawn mowers, had the following inventory balances: Inventory Classification Raw materials Work in process Finished goods Jan 1, 2018 $55,000 110,000 160,000 Dec 31, 2018 $75,000 125,000 155,000 During 2018, the company purchased $240,000 of raw material and spent $420,000 for direct labor. Overhead costs were as follows: Indirect labor Depreciation on plant and equipment Utilities Indirect material 22,000 110,000 23,000 35,000 Sales revenue was $1,210,000 for the year. Selling and administration expenses for the year amounted to $105,000. The firms tax rate is 35 percent.
a) Calculate the raw materials used (Points 2.5).
b) Calculate the total cost of goods manufactured (Points 5.0)
c) Calculate the cost of goods sold (Points 5.0).
d) Calculate net income (Points 5.0).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started