Best Shoe Company makes loafers. During the most recent year, Best incurred total manufacturing costs of $24,300,000. Of this amount, $2,200,000 was direct materials used and $17,800,000 was direct labor. Beginning balances for the year were Raw Materials Inventory, $700,000; Work-in-Process Inventory, $900,000; and Finished Goods Inventory, $900,000. At the end of the year, balances were Raw Materials Inventory, $900,000; Work-in-Process Inventory, $1,700,000; and Finished Goods Inventory, $730,000.
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.