LZ Electronics manufactures and sells smartphones. Unfortunately, the company recently suffered serious fi re damage at its
Question:
LZ Electronics manufactures and sells smartphones. Unfortunately, the company recently suffered serious fi re damage at its home office. As a result, the accounting records for October were partially destroyed and completely jumbled. LZ has hired you to help figure out the missing pieces of the accounting puzzle. Assume that LZ Electronics raw materials inventory contains only direct materials.
Work in process inventory, October 31............................................................ $ 1,000
Finished goods inventory, October 1............................................................... $ 4,900
Direct labor in October.................................................................................... $ 3,400
Purchases of direct materials in October......................................................... $ 9,600
Work in process inventory, October 1........................................................................ 0
Revenues in October........................................................................................ $27,900
Gross profi t in October.................................................................................... $12,400
Direct materials used in October..................................................................... $ 8,500
Raw materials inventory, October 31............................................................... $ 3,500
Manufacturing overhead in October............................................................... $ 6,300
Requirement
Find the following amounts:
a. Cost of goods sold in October
b. Beginning raw materials inventory
c. Ending finished goods inventory
Step by Step Answer: