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    amount of net income

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    Selected account balances of Heedy Manufacturing Company appear below for 2005:

    Beginning of Year End of year
    Finished Goods Inventory 20000 26000
    Work in Process Inventory 30000 35000
    Raw Materials Inventory 46000 26000
    Sales 340000
    Direct Labor 55000
    Factory Supervisory Salaries 18000
    Income Tax Expense 25000
    Factory Insurance 12000
    Raw Material Purchases 90000
    Administrative Expenses 27000
    Sales Return and Allowances 15000
    Factory Depreciation 22000
    Indirect Labor 11000
    Selling Expenses 35000

    Using the above information for Heedy Manufacturing Company, answer the following questions. Support your answers with clearly identified computations.

    1. What was the amount of direct materials used in production?
    2. What were the total manufacturing costs incurred?
    3. What was the cost of goods manufactured?
    4. What was the cost of goods sold?
    5. What was the amount of net income?

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    https://brainmass.com/business/business-math/calculating-cost-goods-sold-net-income-328966

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    1. What was the amount of direct materials used in production?

    Raw materials inventory, beginning of the year 46,000
    Add: Raw materials purchased 90,000
    Less: Raw materials inventory, end of year (26,000)
    Direct materials used in production 110,000

    2. What were the total manufacturing costs incurred?
    Direct labor 55,000
    Direct materials used in production 110,000
    Add: ...

    Solution Summary

    This solution calculates the total manufacturing costs incurred, cost of goods sold, and net income.

    $2.19

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