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:

This problem has been solved!

Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Related Book For  answer-question

Managerial Accounting

ISBN: 9780137689453

1st Edition

Authors: Jennifer Cainas, Celina J. Jozsi, Kelly Richmond Pope

Question Details
Chapter # 2- 2. Understanding Product Costs
Section: Exercises
Problem: 8
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: September 02, 2023 07:17:22