Answer:
Part (a) Cost of goods sold
Sales $792,000
<em>Less Gross profit </em>$462,000
Cost of goods sold $330,000
Part (b) Finished goods inventory at the end of the month
Opening Finished Goods 0
<em>Add</em> Cost of goods manufactured 396,000
Available for Sale 396,000
<em>Less</em> Cost of goods sold 330,000
Finished goods inventory 66,000
Part (c) Direct materials cost
Opening Materials 0
<em>Add</em> Materials purchased 244, 200
Available for production 244, 200
<em>Less</em> Materials inventory, ending 33,000
Direct Materials Cost 211,200
Part (d) Direct labor cost
Total manufacturing costs for the period 455, 400
<em>Less</em> Direct Materials Cost 211,200
<em>Less </em>Indirect labor 171, 600
<em>Less </em>Factory depreciation 26, 400
Direct labor cost 46,200
Part (e) Work in process inventory at the end of the month
Total manufacturing costs for the period 455, 400
<em>Less </em>Cost of goods manufactured 396,000
Work in process inventory 59,400
Explanation:
Part (a) Cost of goods sold
Cost of goods sold = Sales <em>Less </em>Gross profit
Part (b) Finished goods inventory at the end of the month
Finished goods inventory = Opening Finished Goods <em>Add</em> Cost of goods manufactured <em>Less</em> Cost of goods sold
Part (c) Direct materials cost
Direct Materials Cost = Opening Materials <em>Add</em> Materials purchased <em>Less</em> Materials inventory, ending
Part (d) Direct labor cost
Direct labor cost =Total manufacturing costs for the period Less all other manufacturing costs
Part (e) Work in process inventory at the end of the month
Work in process inventory = Total manufacturing costs for the period <em>Less </em>Cost of goods manufactured
