Consider the following information from Sunshine Manufacturing Co. for the month of October. Determine the net income. Item Amount Direct materials used in production $120,000 Direct labor $75,000 Interest expense $5,000 Raw materials inventory, Oct. 1 $28,000 Raw materials inventory, Oct. 31 $20,000 Work in process inventory, Oct. 1 $8,000 Work in process inventory, Oct. 31 $30,000 Finished goods inventory, Oct. 1 $110,000 Finished goods inventory, Oct. 31 $95,000 Purchases of raw materials $130,000 Factory supervisors $40,000 Administrative expense $50,000 Factory maintenance $45,000 Selling expense $60,000 Sales $500,000 Depreciation of machinery $35,000 Utilities for the factory $40,000 Gross Margin $170,000

Consider the following information from Sunshine Manufacturing Co. for the month of October. Determine the net income. Item Amount Direct materials used in production $120,000 Direct labor $75,000 Interest expense $5,000 Raw materials inventory, Oct. 1 $28,000 Raw materials inventory, Oct. 31 $20,000 Work in process inventory, Oct. 1 $8,000 Work in process inventory, Oct. 31 $30,000 Finished goods inventory, Oct. 1 $110,000 Finished goods inventory, Oct. 31 $95,000 Purchases of raw materials $130,000 Factory supervisors $40,000 Administrative expense $50,000 Factory maintenance $45,000 Selling expense $60,000 Sales $500,000 Depreciation of machinery $35,000 Utilities for the factory $40,000 Gross Margin $170,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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