Question 1:

Information for Ace Manufacturing, Inc. as of December 31 follow:

Raw Materials Inventory, Jan 1 $ 78,000

Raw Materials Inventory, Dec 31 64,000

Work in Process Inventory, Jan 1 26,000

Work in Process Inventory, Dec 31 36,000

Finished Goods Inventory, Jan 1 100,000

Finished Goods Inventory, Dec 31 95,000

Raw materials purchases 190,000

Sales commissions 35,000

Depreciation of factory equipment 25,000

Direct labor 68,000

Factory maintenance 10,000

Depreciation of delivery vehicles 16,000

Factory building rent 24,000

Factory utilities 14,000

Interest expense 11,000

Factory insurance 15,000

BONUS: Using the information provided in Question 1, calculate Ace Manufacturing, Inc.'s Cost of Goods Sold for the year ended December 31. (This problem is worth 4 bonus points.)