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DanielleCPA
DanielleCPA , Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 781
Experience:  CPA experienced in tax and financial planning
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The following information is available for the first month

Customer Question

The following information is available for the first month of operations of Zahorik Company, a manufacturer of mechanical pencils:
Salaries360,000
Gross profit210,000
Cost of goods manufactured180,000
Indirect labor78,000
Factory depreciation12,000
Material purchased111,000
Total manufacturing costs for the period207,000
Materials inventory15,000
Using the above information, determine the following missing amounts:
a)Cost of goods sold 150,000
b)Finished goods inventory
c)Direct materials cost
d)Direct labor cost
e)Work in process inventory
Submitted: 5 years ago.
Category: Finance
Expert:  DanielleCPA replied 5 years ago.

DMC :

Hi and welcome to Just Answer! I'm happy to help answer your Finance questions. Feel free to interject at any time if you need clarification.

DMC :

Please give me a few moments to do the necessary calculations to get you an answer.

Customer: replied 5 years ago.
please let me know step by step
Expert:  DanielleCPA replied 5 years ago.
Sure. I will let you know step by step. I am figuring everything out for you right now.
Customer: replied 5 years ago.
Thanks
Expert:  DanielleCPA replied 5 years ago.
Just to confirm - is the first item salaries of 360,000 or sales of 360,000?
Customer: replied 5 years ago.
Sales
Expert:  DanielleCPA replied 5 years ago.

Cost of Goods Sold is Calculated as Sales less Gross Profit.

360,000 - 210,000 = 150,000

 

Finished Goods Inventory = Cost of Goods Manufactured Less Cost of Goods Sold

180,000 - 150,000 = 30,000

 

Direct Materials Cost = Direct Materials Purchased Less Materials Inventory

111,000 - 15,000 = 96,000

 

Work in Process Inventory = Manufacturing Costs less Cost of Goods Manufactured

207,000 - 180,000 = 27,000

 

Direct Labor = Manufacturing Costs Less Direct Materials Less Overhead.

Overhead in this problem is Indirect Labor Plus Depreciation

207,000 - 96,000 - 78,000 -12,000= 21,000

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