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The following data appeared in Vincent Corporations records on December 31 of last year: Direct materials inventory, December 31 $60,000 Direct materials purchased during the
The following data appeared in Vincent Corporations records on December 31 of last year: Direct materials inventory, December 31 $60,000 Direct materials purchased during the year 250,000 Finished goods inventory, December 31 80,000 Indirect labor 25,000 Direct labor 300,000 Accounts payable 100,000 Factory heat, light and power 25,000 Building depreciation (70% is for manufacturing) 60,000 Administrative salaries 40,000 Accounts receivables 100,000 Miscellaneous factory cost 25,000 Property, plant and equipment 300,000 Marketing costs 30,000 Maintenance on factory machines 15,000 Insurance (50% is for factory equipment) 12,000 Distribution costs to customers 15,000 Property taxes on manufacturing property 8,000 Legal fees on customer complaints 20,000 Direct materials used 250,000 Cash 100,000 Work in process inventory, December 31 15,000 Dividends 200,000 On January 1, at the beginning of last year, the Finished Goods Inventory account had a balance of $60,000, and the Work in Process Inventory account had a balance of $25,000. Sales revenue during the year was $1,500,000. Required: a) Determine the cost of goods manufactured. b) Determine the cost of goods sold. c) Determine the operating income (loss)
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