The following data (in thousands of dollars) have been taken from the accounting records of Karling Corporation for the year just ended. Sales Direct Materials Used $990 $90 Direct labour $250 Manufacturing overhead $320 Administrative expenses $150 Selling expenses $410 Work-in-process inventory. beginning $70 Work-in-process inventory, ending $50 Finished goods inventory. Beginning $100 Finished goods inventory, ending $160 Required: a) Compute the Cost of Goods Manufactured b) Compute Cost of Goods Sold c) What is the Gross Margin for the Year? d) Compute Net Operating Income.
The following data (in thousands of dollars) have been taken from the accounting records of Karling Corporation for the year just ended. Sales Direct Materials Used $990 $90 Direct labour $250 Manufacturing overhead $320 Administrative expenses $150 Selling expenses $410 Work-in-process inventory. beginning $70 Work-in-process inventory, ending $50 Finished goods inventory. Beginning $100 Finished goods inventory, ending $160 Required: a) Compute the Cost of Goods Manufactured b) Compute Cost of Goods Sold c) What is the Gross Margin for the Year? d) Compute Net Operating Income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
am. 165.
Transcribed Image Text:The following data (in thousands of dollars) have been taken from the accounting records of Karling Corporation for the year just ended.
Sales
Direct Materials Used
$990
$90
Direct labour
$250
Manufacturing overhead
$320
Administrative expenses
$150
Selling expenses
$410
Work-in-process inventory. beginning
$70
Work-in-process inventory, ending
$50
Finished goods inventory. Beginning
$100
Finished goods inventory, ending
$160
Required:
a) Compute the Cost of Goods Manufactured
b) Compute Cost of Goods Sold
c) What is the Gross Margin for the Year?
d) Compute Net Operating Income.
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