Determining materials, labor, and cost of goods sold
The following inventory data relate to Niagara Corp.:
Inventories
Ending Beginning
Finished goods . . .................................. $75,000 $110,000
Work in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000 70,000
Direct materials . . .................................. 95,000 90,000
Revenues and Costs for the Period:
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $900,000
Cost of goods available for sale . . . . . . . . . . . . . . . . . . . 775,000
Total manufacturing costs . ....................... 675,000
Factory overhead . . . ............................. 175,000
Direct materials used ............................ 205,000


52 Principles of Cost Accounting

Calculate the following for the year:
a. Direct materials purchased.
b. Direct labor costs incurred.
c. Cost of goods sold.
d. Gross profit.