DeeZees makes evening dresses. The following information was gathered from the company records for 2013, the first year of company operations. Work in Process Inventory at the end of 2013 was $17,350.
| Direct material purchased on account |
$574,100 |
| Direct material issued to production |
456,400 |
| Direct labor payroll accrued |
334,500 |
| Indirect labor payroll accrued |
95,300 |
| Prepaid factory insurance expired |
2,750 |
| Factory utilities paid |
20,750 |
| Depreciation on factory equipment recorded |
31,700 |
| Factory rent paid |
147,400 |
| Sales (all on account) |
1,455,000 |
The company's gross profit rate for the year was 45 percent.
a. Compute the cost of goods sold for 2013.
$
b. What was the total cost of goods manufactured for 2013?
$
c. What is Finished Goods Inventory at December 31, 2013?
$
d. If net income was $123,000, what were total selling and administrative expenses for the year?
$
e. Prepare journal entries to record the flow of costs for the year, assuming the company uses a perpetual inventory system and a single Manufacturing Overhead Control account and that actual overhead is included in WIP Inventory.