Happy FeetHappy Feet

Shoe Company makes loafers. During the most recent year,

Happy FeetHappy Feet

incurred total manufacturing costs of

$ 20 comma 800 comma 000$20,800,000.

Of this amount,

$ 2 comma 700 comma 000$2,700,000

was direct materials used and

$ 13 comma 800 comma 000$13,800,000

was direct labor. Beginning balances for the year were Direct Materials,

$ 500 comma 000$500,000;

Work-in-Process Inventory,

$ 1 comma 300 comma 000$1,300,000;

and Finished Goods Inventory,

$ 1 comma 100 comma 000$1,100,000.

At the end of the year, balances were Direct Materials,

$ 700 comma 000$700,000;

Work-in-Process Inventory,

$ 1 comma 500 comma 000$1,500,000;

and Finished Goods Inventory,

$ 820 comma 000$820,000.

Read the requirements

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.

Requirement 1. Analyze the inventory accounts to determine the

cost

of direct materials purchased during the year.

Direct Materials
Direct Materials Used	$2,700,000
Beginning Direct Materials	(500,000)
Ending Direct Materials	700,000
Purchases	$2,900,000

Requirement 2. Analyze the inventory accounts to determine the

cost

of goods manufactured for the year.

Work-in-Process
Beginning Work-in-Process Inventory		1300000
Direct Materials Used
Direct Labor
Manufacturing Overhead
Total Manufacturing Costs Incurred during the Year
Total Manufacturing Costs to Account For
Ending Work-in-Process Inventory
Cost of Goods Manufactured