Share
Explore BrainMass

Hampton Company

Hampton Company had the following inventory balances at the beginning and end of the year:
January 1 December 31
Raw material $ 50,000 $ 35,000
Work in process 130,000 170,000
Finished goods 280,000 255,000

During the year, the company purchased $100,000 of raw material and spent $340,000 on direct labor. Other data: Manufacturing overhead incurred $450,000; sales, $1,560,000; selling and administrative expenses, $90,000; income tax rate, 30%.
Required:
Calculate:
A. Cost of goods manufactured.
B. Cost of goods sold.
C. Net income.

Solution Preview

Hampton Company had the following inventory balances at the beginning and end of the year:

January 1 December 31

Raw material $50,000 $35,000
Work in process 130,000 170,000
Finished goods 280,000 255,000

During the year, the company purchased $100,000 of raw material and spent $340,000 on direct labor. Other data: Manufacturing overhead incurred ...

Solution Summary

This solution is comprised of a detailed explanation to answer cost of manufactured, cost of goods sold, and net income.

$2.19