Cost Flow Relationships

The following information is available for the first year of operations of Idgie Inc., a

manufacturer of fabricating equipment:

Using this information, determine the following amounts:

a$.$ Cost of goods sold

b$.$ Direct materials cost

c$.$ Direct labor cost

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a$.$ Sales minus the cost of goods sold equals the gross profit.

b$.$ Materials purchased less the indirect materials and ending materials inventory equals the

direct materials cost.

c$.$ Direct materials $+$ direct labor $+$ factory overhead equals the total manufacturing costs.