Reference no: EM132560855

Accounting for Manufacturing Company

You are asked to prepare financial statements for Nation Lovers PLC for a fiscal year ended Dec.31, 19x2. The necessary accounting data are not maintained properly.

However, you collected the following incomplete information.

Additional Information

The following estimated data are available for the year:

Net Sales.....................................................................1,000,000

Operating Expenses...........................................................200,000

Gross profit percentage on Sales................................................40%

Details                                                   Jan 1, 19x2                     Dec.31,19x2

Raw Materials Inventory                     $60,000                            ?

Finished Goods Inventory                   $120,000                             ?

Purchases of Direct Materials..............................................$300,000

Cost of Goods Available for Sale..........................................900,000

Direct Manufacturing Costs..............60% of Cost of Goods Manufactured

Indirect Manufacturing Cost............................50% of Conversion Costs

The entity has no semi-completed units both at the beginning & end of the year.

Required:

Question 1: Determine:

a) Cost of Goods Manufactured

b) Ending Finished Goods Inventory

c) Direct Labor Cost

d) Factory Overhead Applied

e) Ending Direct Material Inventory