A company manufactures jackets and provided you with the
following production info for the period:
Beginning balance finished goods............ $120,000
Beginning balance work-in-process.......... $35,000
Beginning balance in raw materials.......... $18
Ending balance in finished goods............. $105,000
Ending balance work-in process............... $37,500
Ending balance raw materials................... $128
Cost of goods manufactured..................... $ 147,500
Manufacturing costs................................... $150,000
Manufacturing overhead............................ $25,000
Direct labor................................................ $55,000
A. How much raw material was used during the period?
B. What was the gross margin at the end of the period if the company spent $12,500 on advertising and had sales of $360,000?
Beginning balance finished goods............ $120,000
Beginning balance work-in-process.......... $35,000
Beginning balance in raw materials.......... $18
Ending balance in finished goods............. $105,000
Ending balance work-in process............... $37,500
Ending balance raw materials................... $128
Cost of goods manufactured..................... $ 147,500
Manufacturing costs................................... $150,000
Manufacturing overhead............................ $25,000
Direct labor................................................ $55,000
A. How much raw material was used during the period?
B. What was the gross margin at the end of the period if the company spent $12,500 on advertising and had sales of $360,000?
