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!