Problem
Selected data concerning the past year's operations of the Altek Manufacturing Company are as follows:
Inventories ($) Beginning Ending Raw materials 71,000 81,000
Work in Process 80,000 30,000
Finished Goods 90,000 110,000
Other Data:
Direct Materials Used ---------------------------------------- $ 326,000
Total Manufacturing Costs Charged to production during the year (includes direct material, direct labour, and manufacturing overhead applied at a rate of 60% of direct-labour cost) -----------------------$ 686,000
Cost of Goods Available for Sale ----------------------$ 826,000
Selling and Administration Expenses -------------------- $ 31,500
Required:
i. What was the cost of raw materials purchased during the year?
ii. What was the direct-labour cost charged to production during the year?
iii. What was the cost of goods manufactured during the year?
iv What was the cost of goods sold during the year?