Task:
Raw material purchases $176,000
Direct labor 255,000
Indirect labor 109,000
Selling and administrative salaries 133,000
Building depreciation* 80,000
Other selling and administrative expenses 195,000
Other factory costs 342,000
Sales revenue ($130 per unit) 1,495,000
*Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions.
Inventory data:
January 1 December 31
Raw material $
16,000
$
18,200
Work in process
35,800
62,100
Finished goods*
112,100
97,900
*The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.
Requirement 1: Calculate Lone Oak's manufacturing overhead for the year.
Requirement 2: Calculate Lone Oak's cost of goods manufactured.
Requirement 3: Compute the company's cost of goods sold. (Omit the "$" sign in your response.)