29 Jun Analying Activity in Inventory Accounts.
Question
Analying Activity in Inventory Accounts.
Select data concerning operations of Cascade Manufacturing Company for the past fiscal year follow:
Raw materials used $300,000
Total manufacturing costs charged to production during the year (includes raw materials, direct labor, and manufacturing overhead applied at a rate of 60 percent of direct labor costs) 681,000
Cost of goods available for sale 826,000
Selling and general expenses 30,000
Inventories
beginning Ending
Raw materials $70,000 $80,000
Work-in-process 85,000 30,000
Finished goods 90,000 110,000
Required
Determined each of the following:
a. Cost of raw materials purchased
b. Direct labor costs charged to production
c. Cost of goods manufactured
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