Wrangler Company makes casual jeans. During the most recent year, Wrangler incurred direct labor cost of S60 M and manufacturing over- head of $75M. The company purchased direct materials of S25.7M.

Beginning balances for the year were Direct Materials Inventory, S3.4M;

work in Process Inventory, S3.8M; and Finished Goods Inventory, $7.4M. At year-end, inventory accounts showed these amounts:

Requirements 

Refer to Exhibit 18-11. Compute:

1. Wrangler Company's cost of direct materials used for the year.

2. Wrangler's cost of goods manufactured for the year.

3. The company's cost of goods sold for the year.

Transcribed Image Text:

Direct Manufacturing Materials Labor Overhead Direct Materials Inventory. $ .9M $ -0- $ -0- Work in Process Inventory. 1.5M 2.0M 2.5M Finished Goods Inventory...... 2.4M 3.2M 4.0M