Answer:
The Answer is A
Explanation:
The Total Manufacturing cost is the sum of Direct Material used, Direct Material and Factory Overhead during the period.
Total Manufacturing Cost = $20,300 (Total Direct Materials used) + $25,800 (Direct Labour) + $48,600 (Factory Overheads)
Total Manufacturing Cost= $94,700
Answer:
I think you should add them and than subtract
Answer:
B. 904,000
Explanation:
Ash Company should report as supplemental information the amount of cash paid to suppliers = cost of goods sold + increase in inventory + decrease in accounts payable
cash paid to suppliers = $875,000 + ($83,000 - $69,000) + ($107,000 - $92,000) = $875,000 + $14,000 + $15,000 = $904,000
Apparently Ash Company buys and then resells goods, which means that one of its largest cash outflows should be suppliers. That is why it should provide supplemental information about cash paid to them.