Chapter 2, Problem 40E

Prepare Statements for a Manufacturing Company

The following balances are from the accounts of Crabtree Machining Company:

Direct materials purchased during the year amount to $717,600, and the cost of goods sold for the year was $2,606,880.

Required

Reconstruct a cost of goods sold statement and fill in the following missing data:

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