Question

Aaron Shoe Company makes loafers. During the most recent year, Aaron incurred total manufacturing costs of $ 22,900,000. Of this amount, $ 2,800,000 was direct materials used and $ 15,800,000 was direct labor. Beginning balances for the year were Raw Materials Inventory, $ 900,000; Work-in-Process Inventory, $ 1,500,000; and Finished Goods Inventory, $ 900,000. At the end of the year, balances were Raw Materials Inventory, $ 800,000; Work-in-Process Inventory, $ 1,500,000; and Finished Goods Inventory, $ 810,000.

Requirements
Analyze the inventory accounts to determine:
1. Cost of raw materials purchased during the year.
2. Cost of goods manufactured for the year.
3. Cost of goods sold for the year.



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  • CreatedJanuary 16, 2015
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