Question
Shoe Company makes loafers. During the most recentyear, PerfectFit incurred total manufacturing costs of $19,900,000. Of thisamount, $2,400,000 was direct materials used and $12,800,000 was
Shoe Company makes loafers. During the most recentyear, PerfectFit incurred total manufacturing costs of $19,900,000. Of thisamount, $2,400,000 was direct materials used and $12,800,000 was direct labor. Beginning balances for the year were DirectMaterials, $900,000; Work-in-Process Inventory, $1,100,000; and Finished GoodsInventory, $600,000. At the end of theyear, balances were DirectMaterials, $700,000; Work-in-Process Inventory, $1,000,000; and Finished GoodsInventory, $930,000.
Analyze the inventory accounts todetermine:
1. Cost of direct materials purchased during the year.
2. Cost of goods manufactured for the year.
3. Cost of goods sold for the year.
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