Question

The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year. Sales $1,980 Selling expenses 280 Manufacturing overhead 460 Direct labor 400 Administrative expenses 300 Purchases of direct materials 240 Finished goods inventory, beginning 240 Finished goods inventory, ending 320 Direct materials inventory, beginning 80 Direct materials inventory, ending 140 Work in process inventory, beginning 140 Work in process inventory, ending 100

Answer 1

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Sales $1,980

Selling expenses 280

Manufacturing overhead 460

Direct labor 400

Administrative expenses 300

Purchases of direct materials 240

Finished goods inventory, beginning 240

Finished goods inventory, ending 320

Direct materials inventory, beginning 80

Direct materials inventory, ending 140

Work in process inventory, beginning 140

Work in process inventory, ending 100

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 140 + (80 + 240 - 140) + 400 + 460 - 100= 1080

Cost Of Goods Sold= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 240 + 1080 - 320= 1000

Income statement:

Sales= 1980

COGS= 1000 (-)

Gross profit= 980

Selling expenses 280

Administrative expenses 300

Net operational profit= 400