Answer:
A materials requisition slip showed that direct materials requested were $58,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is
D) Work In Process Inventory $58,000
Manufacturing Overhead $9,000
Raw Materials Inventory $67,000
Gannon Company had the following information at December 31:
Finished goods inventory, January 1 $ 30,000
Finished goods inventory, December 31 90,000
If the cost of goods manufactured during the year amounted to $1,260,000 and annual sales were $1,650,000, the amount of gross profit for the year is
C) $450,000
Sales $1,650,000
Cost of goods sold
===============
Cost of goods manufactured $1,260,000
Add: Beginning FG inventory $30,000
Goods available for sale $1,290,000
Less : Ending FG inventory $90,000 $1,200,000
Gross profit $450,000
Explanation:
