Determine the following amounts. Round your answers to the nearest dollar.a. Cost of goods soldb. Direct materials costC. Direct labor cost Cost flow relationshipsThe following information is available for the first year of operations of Creston Inc., amanufacturer of fabricating equipment:Sales$ 12,910,000Gross profit5,424,800Indirect labor427,700Indirect materials187,800Other factory overhead845,000Materials purchased4,303,300Total manufacturing costs for the period8,220,700Materials inventory, end of period302,500This information has been collected in the Microsoft Excel Online file. Open the spreadsheet,perform the required analysis, and input your answers in the questions below.

Gross profit means the difference between the sale revenue and cost of production. Cost of goods…

Answered: Determine the following amounts. Round…

Determine the following amounts. Round your answers to the nearest dollar. a. Cost of goods sold b. Direct materials cost C. Direct labor cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Determine the following amounts. Round your answers to the nearest dollar.
a. Cost of goods sold
b. Direct materials cost
C. Direct labor cost

Cost flow relationships
The following information is available for the first year of operations of Creston Inc., a
manufacturer of fabricating equipment:
Sales
$ 12,910,000
Gross profit
5,424,800
Indirect labor
427,700
Indirect materials
187,800
Other factory overhead
845,000
Materials purchased
4,303,300
Total manufacturing costs for the period
8,220,700
Materials inventory, end of period
302,500
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet,
perform the required analysis, and input your answers in the questions below.

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