Root Shoe Company makes loafers. During the most recent year, Root incurred total manufacturing costs of $26,400,000. Of this amount, $2,100,000 was direct materials used and $19,800,000 was direct labor. Beginning balances for the year were Direct materials inventory, $600,000; Work in process inventory, $800,000; and Finished goods inventory, $700,000. At the end of the year, inventory accounts showed these amounts:

Requirements
1. Compute Root Shoe Company€™s cost of goods manufactured for the year.
2. Compute Root€™s cost of goods sold for the year.
3. Compute the cost of materials purchased during theyear.

Transcribed Image Text:

Dircct Manufacturing Materials Labor 0. Ovcrhead Direct materials inventory Work in process inventory Finished goods inventory $ 900,000 400,000 40,000 600,000 150,000 800,000