Chapter 2, Problem 37E

Prepare Statements for a Manufacturing Company

The following balances are from the accounts of Tappan Parts:

Direct materials used during the year amount to $1,196,000 and the cost of goods sold for the year was $1,378,000.

Required

Find the following by completing a cost of goods sold statement:

1. a.      Cost of direct materials purchased during the year.
2. b.      Cost of goods manufactured during the year.
3. c.       Total manufacturing costs incurred during the year.