The following balances are taken from Murray Manufacturing Company’s financial records:

Sales	$3,407,500
Raw materials inventory, Jan. 1, 2020	100,000
Work in process inventory, Jan. 1, 2020	134,000
Finished goods inventory, Jan. 1, 2020	151,000
Raw materials purchases	454,750
Direct labor	607,500
Indirect materials used	39,250
Indirect labor	135,000
Depreciation – Factory equipment	18,215
Rent – Factory building	140,000
Advertising expense	230,000
General and administrative expenses	350,000
Raw materials inventory Dec. 31, 2020	110,000
Work in process inventory, Dec. 31, 2020	103,000
Finished goods inventory, Dec. 31, 2020	165,500

Required: Use actual overhead costs, instead of applied overhead. Use commas (,), where necessary. Do not use dollar signs or extra spaces. Compute the following amounts:

1) Cost of direct materials used. $

2) Total factory overhead. $

3) Total manufacturing costs. $

4) Cost of goods manufactured. $

5) Cost of goods sold. $

6) Gross profit. $

7) Operating Income. $

8) Period costs. $

Answer rating: 100% (QA)

Answer Explanation 1 Cost of direct materials used Raw materials inventory Jan 1 2020 raw materials ... View the full answer