Y6

Practice Quia - Managerial Accounting Concepts Materials Inventory WIP Inventory Finished Goods Inventory Beginning 47/000 Beginning 85,000 Beginning 160,000 Additional Information: Income Materials Purchased 5 202,000 Statement Direct Labor 277,000 Factory Overhead 106,000 Total Manufacturing Cost 695,000 Sales WIP Inventory 12/31 123,000 FG Inventory 12/31 141,000 Cost of Goods Operating Expenses 84,000 Sold Required: Gross Profit 1. Compute the following amounts. Materials Inventory 12/31 Operating OM Used in Production Expenses Manufacturing Cost Incurred During the Period Cost of Goods Manufactured Net Income Cost of Goods Available for Sale 2. Prepare an Income Statement A. Describe some examples of Direct Materials, Direct Labor and Factory Overhead costs. Try to identify examples not already given by other students. 4. If you were a Production Manager, which costs would you focus on in eder to: 1. Improve efficiency of operations? b. Reduce opating costs c. Reduce amount of working capital tied up in the business