Question

The following information is available for Aikman Company.

Answer 1

Answer:

$537,300

$378,700

Explanation:

1. Cost of goods manufactured

Direct material Jan 1 2017

$21,000

Add purchases of raw materials

$150,000

Less raw materials December 2017

($30,000)

Materials used in production

$141,000

Direct labor

$220,000

Manufacturing overhead

$180,000

Total manufacturing cost

$541,000

Add work in process inventory at Jan

$13,500

Less ending work in process inventory

($17,200)

Cost of goods manufactured

$537,300

2. Income statement through gross profit

Sales revenue

$910,000

Less cost of goods sold:

Cost of goods manufactured

$537,300

Add: finished goods at 1 Jan 2017

$27,000

Less: finished goods at 31 2017

($21,000)

Gross profit

$378,700