Understanding the Relationship between Cost Flows, Inventories, and Cost of Goods Sold Ivano Company has collected cost accounting information for the following subset of items for Years 1 and 2.
Required:
Calculate the values of the missing items.
Year 1 Year 2
Item:
Direct materials used in production $ $50,000
Direct materials: Beginning inventory $10,000 $
Direct materials purchases 45,000 $
Direct materials: Ending inventory 15,000 17,000
Direct labor used in production $ 53,000
Manufacturing overhead costs used in production 80,000 76,000
Work in process: Beginning inventory 17,000 14,000
Work in process: Ending inventory 14,000 19,000
Finished goods: Beginning inventory 8,000 7,000
Finished goods: Ending inventory 7,000 11,000
Cost of goods sold 169,000 $

KINDLY CHECK explanation

Explanation:

From the Given information above :

The direct material used in production for year 1:

(Direct material:beginning inventory + direct material purchases - direct material:ending inventory) = $(10,000 + 45,000 - 15,000) = $40,000

2.)Direct labor used in production year 1:

(COGS - beginning finished goods + ending finished goods - direct materials used in production - manufacturing overhead - beginning WIP + Ending WIP)

$(169,000 - 8000 + 7000 - 40000 - 80000 - 17000 + 14000) = $45,000

Direct material : beginning inventory Year 2 = Direct material : ending inventory Year 1 = $15,000

Direct material purchases :

Direct materialnused in production + direct material : ending inventory - direct material : beginning inventory

= 50,000 + 17000 - 15000 = $52,000

COGS Year 2 :

(COGS - beginning finished goods + ending finished goods - direct materials used in production - manufacturing overhead - beginning WIP + Ending WIP) = direct labor used in production

COGS - 7000 + 11000 - 50,000 - 76000 - 14000 + 19000 = 53000

COGS - 117000 = 53000

COGS = 53000 + 117000 = $170000

answer: i'd say the answer is d because the information system is the human already doing the activity.

so they can see what that city is producing and to also see if they can some how get that product. like gold in africa.