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Question
Davis Manufacturing Company had the following data for a recent year:
| January 1 | December 31 | |
| Accounts receivable | $27,000 | $33,000 |
| Materials inventory | 22,500 | 6,000 |
| Work in process inventory | 70,200 | 48,000 |
| Finished goods inventory | 3,000 | 15,000 |
Collections on account were $625,000.
Cost of goods sold was 68% of sales.
Direct materials purchased amounted to $90,000.
Factory overhead was 300% of the cost of direct labor.
Compute:
a. Sales revenue (all sales were on account)
b. Cost of goods sold
c. Cost of goods manufactured
d. Direct materials used
e. Direct labor incurred
f. Factory overhead incurred
Answer
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