Task: Selected account balances of Heedy Manufacturing Company appear below for 2005:
Beginning of Year End of year
Finished Goods Inventory 20000 26000
Work in Process Inventory 30000 35000
Raw Materials Inventory 46000 26000
Sales 340000
Direct Labor 55000
Factory Supervisory Salaries 18000
Income Tax Expense 25000
Factory Insurance 12000
Raw Material Purchases 90000
Administrative Expenses 27000
Sales Return and Allowances 15000
Factory Depreciation 22000
Indirect Labor 11000
Selling Expenses 35000
Instructions:
Using the above information for Heedy Manufacturing Company, answer the following questions. Support your answers with clearly identified computations.
1. What was the amount of direct materials used in production?
2. What were the total manufacturing costs incurred?
3. What was the cost of goods manufactured?
4. What was the cost of goods sold?
5. What was the amount of net income?