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DanielleCPA
DanielleCPA , Certified Public Accountant (CPA)
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17. Calculate (a) cost of sales, (b) direct material and (c)

Customer Question

17. Calculate (a) cost of sales, (b) direct material and (c) direct labor base on the following information: (be sure to label your answers appropriately)
Sales 1,500,000

Gross Profit 500,000

Materials purchased 600,000

Indirect materials 50,000

Total manufacturing cost 1,300,000

Factory overhead 120,000

Materials inventory 60,000
Submitted: 5 years ago.
Category: Finance
Expert:  DanielleCPA replied 5 years ago.

DMC :

Cost of sales: (sales-gross profit)1,500,000-500,000 = 1,000,000

DMC :

Direct Material: Materials Purchased-Indirect Materials-materials inventory
600,000-50,000-60,000=490,000

DMC :

Direct Labor: Total Manufacturing costs - direct materials-factory overhead
1,300,000-490,000-120,000=690,000

Customer: replied 5 years ago.
you only aswer one of the questions here
Expert:  DanielleCPA replied 5 years ago.
I answered the question you posted here. The other questions are answered in the posts you listed them on in.
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