Module 1: Chapter 2: Cost Flow (To be posted as a group assignment in your group discussion area) The following information for Transcontinental Inc. is provided. Use this information to answer the succeeding eight questions: Materials Inventory (Jan. 1) $41,500 Work-in-process Inventory (Jan. 1) 18,900 Finished Goods Inventory (Jan. 1) 26,400 Cost of materials purchased 145,700 Total direct labor costs 112,300 Depreciation - factory machinery 37,800 Small tools expense 9,100 Office supplies 23,000 Machine helpers wages 38,200 Miscellaneous factory expenses 15,600 Presidents salary 315,000 Power - factory 17,800 Factory insurance expense 10,600 Factory supervisors salary 89,300 Sales and advertisement 74,000 Power-office 7,200 Depreciation - office equipment 4,750 Materials inventory (Dec. 31) 18,200 Work-in-process inventory (Dec. 31) 42,200 Finished Goods Inventory (Dec. 31) 25,900 The sales for Transcontinental Inc. during this year were $1,645,000 and a total of 3,900 units were completed during the year. Compute the following for the year: 1. Cost of materials used? _____________ 2. Factory overhead? _____________ 3. Total manufacturing cost? _____________ 4. Cost of goods manufactured? _____________ 5. Cost of goods sold? _____________ 6. Gross margin? _____________ 7. Net Income (Loss)? _____________ 8. Unit Cost? _____________ Sanjay Gupta, WMBA 6010