Add purchases of raw materials 125000 raw materials

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Add: Purchases of raw materials 125,000 Raw materials available for use 134,000 Deduct: Raw materials inventory, ending 6,000 Raw materials used in production $128,000 Direct labor 70,000 Manufacturing overhead 105,000 Total manufacturing costs 303,000 Add: Work in process inventory, beginning 17,000 320,000 Deduct: Work in process inventory, ending 30,000 Cost of goods manufactured $290,000 Correct! MERIWELL COMPANY Income Statement Sales $500,000 Cost of goods sold: Finished goods inventory, beginning $20,000 Add: Cost of goods manufactured 290,000 Goods available for sale 310,000 Finished goods inventory, ending 40,000 270,000 Gross margin 230,000 Selling and administrative expenses: Selling expenses 80,000 Administrative expenses 110,000 190,000 Net operating income $40,000 Correct! 3. Equivalent units of product produced 10,000 Average cost per unit for direct materials $12.80 <--Correct! Average cost per unit for fixed manufacturing overhead $9.00 <--Correct! 4. Equivalent units of product produced 15,000 Average cost per unit for direct materials $12.80 <--Correct! Total cost for direct materials $192,000 <--Correct! Average cost per unit for fixed manufacturing overhead $6.00 <--Correct!
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