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    Cost of goods made, work in process

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    Please see attached file for the problem

    Problem I

    First, inc. Has the following account balances at the end of march, 2001

    Administrative expenses $ 53,000
    Direct labor 56,000
    Direct material beg. Inv. 12,000
    Direct material end. Inv. 10,000
    Direct material purchases 55,000
    Finished goods beg. Inv. 36,000
    Finished goods end. Inv. 32,000
    Manufacturing overhead 38,000
    Sales revenue 500,000
    Selling expenses 8,000
    Work in process beg. Inv. 10,000
    Work in process end. Inv. 12,000

    Required: (show all work for this problem on work sheet provided on page 2).

    1. Total materials put into production.

    2. Total production costs.
    (manufacturing costs incurred)

    3. Cost of goods manufactured.

    4. Cost of goods sold.

    5. Gross profit.

    6. Operating expenses.

    7. Net income.

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    Solution Summary

    This solution is given in Excel. All calculations are given, with comments given when you hover over the cells. The formulas are also in the cells. An income statement is created for you so you can answer all the inquiries.