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Question
Taylor Industries had a fire, and some of its accounting records were destroyed. Available information is as follows for the year ended December 31:
| Materials inventory, December 31 | $ 15,000 |
| Direct materials purchased | 28,000 |
| Direct materials used | 22,900 |
| Cost of goods manufactured | 135,000 |
Additional information:
Factory overhead is 150% of direct labor cost.
Finished goods inventory decreased by $18,000 during the year.
Work in process inventory increased by $12,000 during the year.
Determine:
a. Materials inventory, January 1
b. Direct labor incurred
c. Factory overhead incurred
d. Cost of goods sold
Answer
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