Problem:
Analyzing Activity in Inventory Accounts
Select data concerning operations of Cascade Manufacturing Company for the past fiscal year follow:
Raw materials used .. $300,000
Total manufacturing costs charged to production during the year (includes raw materials, direct labor, and manufacturing overhead applied at a rate of 60 percent of direct labor costs 680,000
Cost of goods available for sale 826,000
Selling and general expenses .. 30,000
Inventories
Beginning Ending
Raw materials $70,000 $80,000
Work in process $85,000 30,000
Finished goods . $90,000 110,000
Required
Determine each of the following:
a. Cost of raw materials purchased
b. Direct labor costs charged to production
c. Cost of goods manufactured
d. Cost of goods sold