The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils: Sales $792,000 Gross profit 462,000 Cost of goods manufactured 396,000 Indirect labor 171, 600 Factory depreciation 26, 400 Materials purchased 244, 200 Total manufacturing costs for the period 455, 400 Materials inventory, ending 33,000 Using the above information, determine the following missing amounts: a. Cost of goods sold b. Finished goods inventory at the end of the month c. Direct materials cost d. Direct labor cost e. Work in process inventory at the end of the month

Part (a) Cost of goods sold

Sales                        $792,000

Less Gross profit    $462,000

Cost of goods sold $330,000

Part (b) Finished goods inventory at the end of the month

Opening Finished Goods                                   0

Add Cost of goods manufactured              396,000

Available for Sale                                         396,000

Less Cost of goods sold                              330,000

Finished goods inventory                              66,000

Part (c) Direct materials cost

Opening Materials                                           0

Add Materials purchased                         244, 200

Available for production                           244, 200

Less Materials inventory, ending                33,000

Direct Materials Cost                                   211,200

Part (d) Direct labor cost

Total manufacturing costs for the period          455, 400

Less Direct Materials Cost                                   211,200

Less Indirect labor                                                171, 600

Less Factory depreciation                                   26, 400

Direct labor cost                                                    46,200

Part (e) Work in process inventory at the end of the month

Total manufacturing costs for the period          455, 400

Less Cost of goods manufactured                     396,000

Work in process inventory                                   59,400

Explanation:

Part (a) Cost of goods sold

Cost of goods sold = Sales Less Gross profit

Part (b) Finished goods inventory at the end of the month

Finished goods inventory = Opening Finished Goods Add Cost of goods manufactured  Less Cost of goods sold                    

Part (c) Direct materials cost

Direct Materials Cost  = Opening Materials Add Materials purchased Less Materials inventory, ending                                    

Part (d) Direct labor cost

Direct labor cost  =Total manufacturing costs for the period Less all other manufacturing costs      

Part (e) Work in process inventory at the end of the month

Work in process inventory = Total manufacturing costs for the period Less Cost of goods manufactured        

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