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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




Top Answer

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

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Great question... View the full answer

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