1. Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company
The following information is available for Gonzalez Manufacturing Company for the month ending July 31, 2016:
|
Cost of goods manufactured
|
$275,370
|
|
Selling expenses
|
91,980
|
|
Administrative expenses
|
48,630
|
|
Sales
|
585,890
|
|
Finished goods inventory, July 1
|
66,210
|
|
Finished goods inventory, July 31
|
60,350
|
For the month ended July 31, 2016, determine Gonzalez's (a) cost of goods sold, (b) gross profit, and (c) net income.
2. Cost Flow Relationships
The following information is available for the first month of operations of Zahorik Company, a manufacturer of mechanical pencils:
|
Sales
|
$266,930
|
|
Gross profit
|
155,620
|
|
Cost of goods manufactured
|
133,470
|
|
Indirect labor
|
57,920
|
|
Factory depreciation
|
8,810
|
|
Materials purchased
|
82,210
|
|
Total manufacturing costs for the period
|
153,480
|
|
Materials inventory, ending
|
10,940
|
Using the above information, determine the following missing amounts:
a. Cost of goods sold
b. Finished goods inventory at the end of the month
c. Direct materials cost
d. Direct labor cost
e. Work in process inventory at the end of the month