Question 1) The following balances are from the accounts of Tappan Parts:
| |
January 1 (Beginning) |
December 31 (Ending) |
| Direct materials inventory |
962,000 |
884,000 |
| Work-in-process inventory |
1,354,000 |
1,430,000 |
| Finished goods inventory |
312,000 |
364,000 |
Direct materials used during the year amount to $1,196,000 and the cost of goods sold for the year was $1,378,000.
Required:
Prepare a cost of goods sold statement.
Question 2:
The following data are available for Remington Advisors for the month just ended:
| Gross margin |
810,000 |
| Operating profit |
305,000 |
| Revenues |
1,700,000 |
Required:
a. Find the marketing and administrative costs.
b. Find the cost of services sold.