Question
Following is information from Kaitlyn Company for the year ended December 31, 2018. Direct labor $ 90,000 Operating and administrative expenses (costs) of sales ????
Following is information from Kaitlyn Company for the year ended December 31, 2018.
Direct labor $ 90,000 Operating and administrative expenses (costs) of sales ???? Net sales $ 520,000 Initial Inventories (None) Direct Material Inventory-December 31, 2018 $ 55,000 Inventory of Work in process-December 31, 2018 $ 30,000 Inventory of finished goods- December 31, 2018 $ 4,000 Purchase of direct material ??? Direct material used $ 53,000 Indirect manufacturing costs ??? Total manufacturing costs incurred (in this period) ??? Cost of manufactured goods $ 245,000 Cost of sales ??? Gross margin (gain) ??? Net income (ignore taxes) $ 60,000
Calculate: operating and administrative expenses, purchase of direct materials, indirect manufacturing costs, total manufacturing costs, cost of sales and gross margin
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