Compute the Cost of Goods Manufactured and Cost of Goods Sold for South Marine Company for the most recent year using the amounts described next. Assume that Raw Materials Inventory contains only direct materials. Beginning of Year

End of Year

End of Year

Raw materials inventory. $.......$

$$20,000$

$$25,000$

Insurance on plant. $......................$

$$7,000$

Work in process inventory. $......$

$$44,000$

$$31,000$

Depreciation$-$plant building and equipment. $...$

$$12,500$

Finished goods inventory. $.......$

$$15,000$

$$24,000$

Repairs and maintenance$-$plant. $............$

$$4,100$

Purchases of direct materials. $...$

$$71,000$

Marketing expenses. $.....................$

$$78,000$

Direct labor. $..................$

$$87,000$

General and administrative expenses. $.......$

$$30,500$

Indirect labor. $.................$

$$41,000$

Start the calculation for cost of goods manufactured by calculating the direct materials used.

South Marine Company

Calculation of Direct Materials Used

For Current Year

Plus:

Less:

Direct materials used