Analyzing Activity in Inventory Accounts

Selected data concerning operations of Cascade Manufacturing Company for the past fiscal year follow:

Raw materials used $$300,000$

Total manufacturing costs charged to production during the year$($includes raw materials, direct labor, and manufacturing overheadapplied at a rate of $60$ percent of direct labor costs$)700,000$

Cost of goods available for sale $772,500$

Selling and general expenses $30,000$

Inventories

Beginning Ending

Raw materials $$35,000$ $$40,000$

Work$-$in$-$process $42,50015,000$

Finished goods $45,00055,000$

Determine each of the following:

$($a$)$ Cost of raw materials purchased

$Answer

$($b$)$ Direct labor costs charged to production

$Answer

$($c$)$ Cost of goods manufactured

$Answer

$($d$)$ Cost of goods sold

$Answer