IBM reported the following costs and expenses during the current year: Raw material purchases: $7,000,000 Direct labor:
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Question:
IBM reported the following costs and expenses during the current year:
- Raw material purchases: $7,000,000
- Direct labor: $3,500,000
- Indirect labor - factory: $2,300,000
- Factory repairs and maintenance: $700,000
- Depreciation on factory building: $900,000
- Advertising: $1,300,000
- Sales salaries: $2,000,000
- Office salaries: $2,500,000
- Utilities - 70% applicable to factory: $1,400,000
Beginning and ending inventories:
Beginning | Ending | |
Raw Materials | $800,000 | $1,000,000 |
Work in process | $900,000 | $800,000 |
Finished goods | $1,100,000 | $1,300,000 |
- Calculate the cost of raw materials used.
- Determine the total manufacturing costs.
- Compute the cost of goods manufactured.
- Calculate the cost of goods sold.
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