The following information was drawn from the accounting records of Boulder Manufacturing Company:
Beginning Ending
Raw materials inventory............................. $ 8,000.............. $ 9,000
Work in process inventory...........................12,400................10,000
Finished goods inventory............................13,600................12,000
During the accounting period, Boulder paid $32,000 to purchase raw materials, $30,000 for direct labor, and $22,000 for overhead costs. Assume that actual overhead equaled applied overhead.
Required
a. Determine the amount of raw materials used.
b. Determine the amount of cost of goods manufactured (the amount transferred from Work in Process Inventory to Finished Goods Inventory).
c. Assuming sales revenue of $153,600, determine the amount of gross margin.