Question
Cost of Goods Manufactured and Sold Selected account balances of Downing Manufacturing Company appear below for the current year: ---------------------------------------------------- Beginning of Year ----------------- End
Cost of Goods Manufactured and Sold
Selected account balances of Downing Manufacturing Company appear below for the current year:
----------------------------------------------------Beginning of Year -----------------End of Year
Finished Goods Inventory ------------------$25,000 ----------------------------$ 32,000
Work In Process Inventory------------------ 30,000------------------------------35,000
Raw Materials Inventory ---------------------46,000 ---------------------------26,000
Sales---------------------------------------------------------------------------------- 380,000
Direct Labor --------------------------------------------------------------------------45,000
Factory Supervisory Salaries---------------------------------------------------- 18,000
Income Tax Expense--------------------------------------------------------------- 25,000
Factory Insurance ------------------------------------------------------------------12,000
Raw Material Purchases --------------------------------------------------------75,000
Administrative Expenses -------------------------------------------------------17,000
Sales Returns and Allowances ----------------------------------------------15,000
Factory Depreciation -----------------------------------------------------------22,000
Indirect Labor -------------------------------------------------------------------11,000
Selling Expenses -------------------------------------------------------------35,000
Instructions
Using the above information for Downing Manufacturing Company, answer the following questions. Support your answers with clearly identified computations.
1. What was the amount of direct materials used in production?
2. What was the total conversion costs incurred?
3. What was the cost of goods manufactured?
4. What was the cost of goods sold?
5. What was the amount of net income?
PLEASE SHOW ME HOW YOU GOT YOUR ANSWERS! THANKS!
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