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Marks Manufacturing Company

Please see the attached file.... I have filled out a template for the items listed, but am unsure of the outcome. Can you advise?
Thank you.

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 Preview

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 ...

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.

$2.19