The following information applies to Amanda Company for 2022: Prime costs were $145,000. Direct labor was one-third of
The following information applies to Amanda Company for 2022:
• Prime costs were $145,000.
• Direct labor was one-third of conversion costs.
• Sales were $310,000.
• Conversion costs $120,000.
• The balances in the work in process inventory and the finished goods Inventory were as follows:
• A 3-year insurance policy to cover selling and administrative personnel was signed on January 1, 2022, for $12,000.
• Other selling and administrative costs totaled $13,000.
a. Complete the T-accounts for work in process and finished goods.
b. What were direct materials used?
c. What was cost of goods manufactured?
d. What was gross margin?
e. What was operating income?
f. Record the entry for direct labor:
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