1. FOr this questions we need to compute cost of goods sold for 2009

raw materials 1/1/09. 22,000

12/31/09. 11,000

work in progress 1/1/09. 20,000

12/31/09. 25,000

finished goods 1/1/09. 55,000

12/31/09. 62,000

salaries-direct manufacturing 100,000

Indirect manufacturing 60,000

Selling. 80,000

purchases 110,000

depreciation- factory assets 8,000

Selling department assets 4,000

utilities- factory. 4,200

Selling department. 1,400

1. in Selling it's products last period ABC company incurred FIXED COST of $48,000 and earned a before tax income of 22,000. Assuming the company's contribution margin rate was 40% .

calculate -

total sales Dollars

total variable costs

Finished goods -1/1/09 -12/31/09 55,0000 62,0008 Salaries -direct manufacturing -indirect manufacturing 100,000 -selling 60,000 Purchases 80,000 Depreciation-Factory assets 110,000 8,000 Utilities-factory -selling department assets 4,000 -selling department 4,200 1,400 SHOW YOUR COMPUTATION BELOW: Beg. finished goods inv. 55, 00 0 add : cost of goods manufacture 160,200 215, 206 less ending Fin goods invent - 62, 000 153, 200 . cost of goods manufactured : beg . wip Inv. 20,000 Direct 22, 000+ 110,000= 1:21, 000 132,000 - 11,000 Direct labor -7 40,000 420 02 185, 200 25,000 160, 200 2.Finished goods -1/1/09 -12/31/09 55,0000 62,0008 Salaries -direct manufacturing -indirect manufacturing 100,000 -selling 60,000 Purchases 80,000 Depreciation-Factory assets 110,000 8,000 Utilities-factory -selling department assets 4,000 -selling department 4,200 1,400 SHOW YOUR COMPUTATION BELOW: Beg. finished goods inv. 55, 00 0 add : cost of goods manufacture 160,200 215, 206 less ending Fin goods invent - 62, 000 153, 200 . cost of goods manufactured : beg . wip Inv. 20,000 Direct 22, 000+ 110,000= 1:21, 000 132,000 - 11,000 Direct labor -7 40,000 420 02 185, 200 25,000 160, 200 2