Learning_Exercises_-_Student(1)

Learning_Exercises_-_Student(1) - Given Data Merchandise...

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Given Data Merchandise Inventory - end of year $20,000 Purchases $100,000 Freight - in $4,000 Sales $200,000 Property Taxes - Store $8,000 Depreciation - Store $25,000 Insurance - Store $7,000 Salary - Sales Staff $20,000 Advertising $5,000 What is the gross margin? Sales minus the cost of goods sold Direct manufacturing costs? $13,500 Cost of goods manufactured? $15,000 CGM&S, Gross Margin and Net Income?
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$116,000
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What is total manufacturing cost? Sum of direct materials used, direct labor (must be calculated before we can prepare and manufacturing overhead costs the income statement) Inventories Dec. 31, 2009 Dec. 31, 2010 Direct Materials $1,000 $500 Work-in-process $3,500 $2,000 Finished Goods $10,000 $5,000 Other Data: Direct materials purchased $3,000 Direct labor $4,000 Overhead $6,000 Selling costs $2,000 General and administrative costs $5,000 Sales $50,000 Solution -
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Calculate cost of goods manufactured Total manufacturing cost plus beginning WIP minus ending WIP Inventories Dec. 31, 2009
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Learning_Exercises_-_Student(1) - Given Data Merchandise...

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