Question
XYZ Inc. Manufacturing costs based on raw materials used, direct labor, and manufacturing overhead totaled $1,500,000. Beginning and ending work-in-process inventories were $60,000 and $90,000,
XYZ Inc. Manufacturing costs based on raw materials used, direct labor, and manufacturing overhead totaled $1,500,000. Beginning and ending work-in-process inventories were $60,000 and $90,000, respectively. XYZ's balance sheet also revealed respective beginning and ending finished-goods inventories of $250,000 and $180,000. Based on the above how much would ABC discloses as cost of goods manufactured (CGM) and cost of goods sold (COGS)? How much would be NI after tax if sales are $2,000,000, other operating expenses are $60,000, and tax rate is 35%?
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