1. Terra Inc.'s accounting records reflect the following inventories:

Dec. 31, 2016 Dec. 31, 2017

Raw materials inventory $ 80,000 $ 64,000

Work in process inventory 104,000 116,000

Finished goods inventory 100,000 92,000

During 2017, Terra purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much raw materials were transferred to production during 2017 for Terra?

2. Eddie Company reported the following year-end information:

Beginning work in process inventory $ 46,000

Beginning raw materials inventory 24,000

Ending work in process inventory 50,000

Ending raw materials inventory 20,000

Raw materials purchased 830,000

Direct labor 440,000

Manufacturing overhead 100,000

How much is Eddie's cost of goods manufactured for the year?

Answer rating: 100% (QA)

1 PURCHASES 1450000 ADD beginning inventory 80000 raw materials available 1530000 ... View the full answer