The following information was obtained from the records of Martinez Corporation during 2016.
1. Manufacturing overhead was applied at a rate of 175 percent of direct labor dollars.
2. Beginning value of inventory follows:
a. Beginning Work in Process Inventory, $32,000.
b. Beginning Finished Goods Inventory, $15,000.
3. During the period, Work in Process Inventory decreased by 25 percent and Finished Goods Inventory increased by 30 percent.
4. Actual manufacturing overhead costs were $105,000.
5. Sales were $750,000.
6. Adjusted Cost of Goods Sold was $325,000.
Required:
Use the preceding information to find the missing values in the following table:
Item Amount
Direct materials used.........................................$ ?
Direct labor......................................................?
Manufacturing overhead applied.....................122,500
Current manufacturing costs..................................?
Plus: Beginning work in process inventory..........32,000
Less: Ending work in process inventory.....................?
Cost of goods manufactured..................................?
Plus: Beginning finished goods inventory............15,000
Less: Ending finished goods inventory......................?
Unadjusted cost of goods sold................................?
Overhead adjustment...........................................?
Adjusted cost of goods sold...........................325,000