Calculate the cost of the raw materials used in production during the year. The following data have been taken from the accounting records of ABD Corporation for thejust completed year.Sales46,500,000Raw materials inventory, beginningRaw materials inventory, ending3,500,0002,000,000Purchases of raw materials9,500,000Direct labor7,500,000Manufacturing overheadAdministrative expenses10,500,0004,500,000Selling expensesWork in process inventory, beginningWork in process inventory, endingFinished goods inventory, beginningFinished goods inventory, ending6,000,0004,000,0003,500,0004,500,0007,000,000

Cost accounting is one of the important branch of accounting. Under this, several type of costs are…

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Business

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Calculate the cost of the raw materials used in production during the year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Calculate the cost of the raw materials used in production during the year.

The following data have been taken from the accounting records of ABD Corporation for the
just completed year.
Sales
46,500,000
Raw materials inventory, beginning
Raw materials inventory, ending
3,500,000
2,000,000
Purchases of raw materials
9,500,000
Direct labor
7,500,000
Manufacturing overhead
Administrative expenses
10,500,000
4,500,000
Selling expenses
Work in process inventory, beginning
Work in process inventory, ending
Finished goods inventory, beginning
Finished goods inventory, ending
6,000,000
4,000,000
3,500,000
4,500,000
7,000,000

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