The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year. Line Item DescriptionAmountSales$1,980Selling expenses280Manufacturing overhead460Direct labor400Administrative expenses300Purchases of direct materials240Finished goods inventory, beginning240Finished goods inventory, ending320Direct materials inventory, beginning80Direct materials inventory, ending140Work in process inventory, beginning140Work in process inventory, ending100 Required:Enter all amounts in thousands of dollars.a. What was the cost of the direct materials used in production during the year?b. What was the cost of goods manufactured for the year?c. What was the cost of goods sold for the year?d. What was the net income for the year?

Cost of goods manufactured is the cost incurred in the factory for the production of goods. Once the…

Answered: he following data (in thousands of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6PB: During the year, a company purchased raw materials of $77,321 and incurred direct labor costs of...

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The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year.

Line Item Description	Amount
Sales	$1,980
Selling expenses	280
Manufacturing overhead	460
Direct labor	400
Administrative expenses	300
Purchases of direct materials	240
Finished goods inventory, beginning	240
Finished goods inventory, ending	320
Direct materials inventory, beginning	80
Direct materials inventory, ending	140
Work in process inventory, beginning	140
Work in process inventory, ending	100

Required:

Enter all amounts in thousands of dollars.

a. What was the cost of the direct materials used in production during the year?

b. What was the cost of goods manufactured for the year?

c. What was the cost of goods sold for the year?

d. What was the net income for the year?

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