Reference no: EM132557527
Question 1: The following amounts were taken from the general ledger of the Excellent Manufacturing Company. Compute the cost of goods manufactured and the cost of goods sold for the company for the year.
Raw materials inventory - beg. of year $50,000
Depreciation - plant & equipment $26,000
Raw materials inventory - end of year 56,000
Repairs and maintenance - plant 8,000
Work in process inv. - beg. of year 80,000
Insurance on plant 18,000
Work in process inv. - end of year 70,000
General and administration exp. 25,000
Finished goods inv. - beg. of year 36,000
Indirect labour 30,000
Finished goods inv. - end of year 50,000
Direct labour 64,000
Purchase of direct materials 30,000
Marketing expenses 40,000
Option a. $370,000
Option b. $300,000
Option c. $180,000
Option d. $200,000