Question

Cost Flow Relationships

The following information is available for the first year of operations of Engle Inc., a manufacturer of fabricating equipment:

Sales	$1,156,500
Gross profit	312,300
Indirect labor	104,100
Indirect materials	42,800
Other factory overhead	19,700
Materials purchased	589,800
Total manufacturing costs for the period	1,276,800
Materials inventory, end of period	42,800

Using the above information, determine the following missing amounts:

a. Cost of goods sold	$
b. Direct materials cost	$
c. Direct labor cost	$

Answer 1

a) Cost of goods sold
Particulars		amount
Sale		$ 11,56,500.00
less: gross profit		$    3,12,300.00
Cost of goods sold		$    8,44,200.00
b) Direct material cost
Particulars		Amount
material purchase		$    5,89,800.00
less: material inventory end		$       42,800.00
less: indirect material		$       42,800.00
Direct material cost		$    5,04,200.00
c) Direct labour cost
Particulars		amount
Total manufacturing cost for the period		$ 12,76,800.00
less: Direct material cost		$    5,04,200.00
less: Factory overhead (104100+42800+19700)		$    1,66,600.00
Direct labor cost		$    6,06,000.00