Selected data concerning the past years operations of the Lone Star Leather Company are as follows:

	Inventories
	Beginning	Ending
Raw material	$61,000	$	81,000
Work in process	80,000		30,000
Finished goods	90,000		100,000

Other data:

Direct material used	$318,000
Total manufacturing costs charged to production during the year (includes direct material, direct labor, and manufacturing overhead applied at a rate of 60% of direct-labor cost)	686,000
Cost of goods available for sale	826,000
Selling and administrative expenses	31,500

References

Section BreakExercise 3-31 Basic Manufacturing Cost Flows (LO 3-2, 3-6)

8.

value: 3.84 points

Required information

Exercise 3-31 Part 1

Required:

1.

What was the cost of raw materials purchased during the year?

2.

What was the direct-labor cost charged to production during the year?

3.

What was the cost of goods manufactured during the year?

4.	What was the cost of goods sold during the year?