Selected data concerning the p
Selected data concerning the past year’s operations of the Altek Manufacturing Company are as follows:
Inventories ($) Beginning Ending
Raw materials 71,000 81,000
Work in Process 80,000 30,000
Finished Goods 90,000 110,000
Other Data:
Direct Materials Used ———————————————- $ 326,000
Total Manufacturing Costs Charged to production
during the year (includes direct material, direct labour,
and manufacturing overhead applied at a
rate of 60% of direct-labour cost) ———————————-$ 686,000
Cost of Goods Available for Sale ———————————-$ 826,000
Selling and Administration Expenses —————————– $ 31,500
Required:
a) What was the cost of raw materials purchased during the year?
b) What was the direct-labour cost charged to production during the year?
c) What was the cost of goods manufactured during the year?