Question

You have the following information about the activities of Martin Inc. for 2014:

   

Sales	$	1,560,000
Factory maintenance		66,000
Indirect labour		32,000
Direct material purchases		204,000
Factory utilities		47,000
Direct materials used in production		198,000
General and administrative expenses		101,800
Beginning work-in-process inventory		27,200
Beginning finished goods inventory		63,000
Ending work-in-process inventory		28,900
Beginning direct materials inventory		16,000
Selling expenses		97,900
Direct labour		285,000
Factory insurance		45,600
Indirect materials		39,100
Depreciation,factory		55,000
Cost of goods sold		709,000

   

Required:

1.	What was the amount of the ending direct materials inventory?

        

2.	What was the amount of the total manufacturing costs?

        

3.	What was the cost of goods manufactured in 2014?

         

4.	What was the amount of the ending finished goods inventory?

      

Answer 1

1) Ending direct material = Beginning direct material+Direct material purchase-Direct material used

= 16000+204000-198000

Ending direct material = 22000

2) Total manufacturing cost = Direct material used +direct labour+Factory overhead

Factory overhead = 32000+47000+45600+39100+55000+66000 = 284700

Total manufacturing cost = 198000+285000+284700 = $767700

3) Cost of goods manufactured = 27200+767700-28900 = 766000

4) Ending finished goods = 63000+766000-709000 = 120000