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# McGroin Corp had the following beginning and ending inventory balances for the year ended December 31, 2015: JAN2015 DECEMBER2015 Materials \$20.000...

McGroin Corp had the following beginning and ending inventory balances for the year ended December 31, 2015:

JAN2015              DECEMBER2015

Materials                                                    \$20.000                    \$30.000
Work in Process                                        \$15.000                    \$18.000

Finished Goods                                         \$30.000                    \$20.000

In addition, direct labor costs of \$75,000 were incurred, overhead applied equaled \$80,000, materials purchased were \$100,000 and selling and administrative costs were \$175,000. McGroin Co. sold 25,000 units of product during the year at a sales price of \$20.00 per unit.

1.Refer to Figure 1. What was the amount of cost of goods manufactured for the year?

a. \$202,000

b. \$266,000

c. \$245,000

d. \$242,000

2.Refer to Figure 1. What was the amount of cost of goods sold for the year?

a. \$235,000

b. \$242,000

c. \$252,000

d. \$245,000

3.Refer to Figure 1. What was McGroin's operating income <loss> for the year?

a. \$28,000

b. \$73,000

c. <\$3,500>

d. \$78,000

4.Refer to Figure 1. Compute the direct materials used.

a. \$95,000

b. \$75,000

c. \$90,000

d. \$80,000

1. Cost of goods manufactured = 100000+20000-30000 + 15000-18000 + 75000 + 80000 = 242000... View the full answer

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