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Question
The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year:
| Sales | $1,980 |
| Selling expenses | 280 |
| Factory overhead | 460 |
| Direct labor | 400 |
| Administrative expenses | 300 |
| Direct materials purchased during year | 240 |
| Finished goods inventory, January 1 | 240 |
| Finished goods inventory, December 31 | 320 |
| Materials inventory, January 1 | 80 |
| Materials inventory, December 31 | 140 |
| Work in process inventory, January 1 | 140 |
| Work in process inventory, December 31 | 100 |
Determine:
a. Cost of the direct materials used in production during the year
b. Cost of goods manufactured for the year
c. Cost of goods sold for the year
d. Net income for the year
Present all computations and final answers in thousands of dollars.
Answer
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