Marks Manufacturing Company
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Marks Manufacturing Company has the following beginning balances:
Materials inventory $100,000
Work in process $370,000
Finished Goods $ 60,000
During the period, the following occurred:
1. Purchased for cash $872,000 worth of raw materials. Delivery charges on these materials equaled $22,000.
2. Used $565,000 worth of direct labor in the production process.
3. Used $900,000 worth of material in the production process.
4. The following costs were incurred:
Indirect labor $27,000
Factory supplies used 46,000
Property taxes and insurance 14,000
Depreciation -factory 54,000
Factory -utilities 147,000
Depreciation - manufacturing 46,000
Selling and administrative 28,000
5. Transferred $2,035,000 worth of work in process inventory to finished goods inventory.
6. Sales were $2,600,000.
7. The ending balance in finished goods inventory was $93,000.
Required:
a. Calculate the Ending Materials and Work in Process Inventory balances.
b. What was Marks Manufacturing's gross margin during the period?
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Solution Summary
The solution explains how to calculate the ending balance of material and work in process inventory and the gross margin for the period.
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Marks Manufacturing Company has the following beginning balances:
Materials inventory $100,000
Work in process $370,000
Finished Goods $ 60,000
During the period, the following occurred:
1. Purchased for cash $872,000 worth of raw materials. Delivery charges on these materials equaled $22,000.
2. Used $565,000 worth of direct labor in the production process.
3. Used $900,000 worth of material in the production process.
4. The following costs were incurred:
Indirect ...
Purchase this Solution
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