Chapter 6, Problem 12SC

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Financial Accounting

What amount should ALL-OUT report as inventories in its statement of financial position?

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Techtronic Inc., a manufacturing company, has just completed an order that Micro Solutions placed for 150 gadgets. The direct material, purchased parts, and direct labor costs for the Micro order are as follows: • Cost of direct materials: $54,000 • Cost of purchased parts: $30,000 • Direct labor hours: 300 hours • • Average direct labor pay rate: $18 per hour Overhead costs were applied at a plant wide overhead rate of 250 percent of direct labor dollars. Compute the total cost of the Micro order.

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Given below are the account balances for Redstone Corp: . Gross sales: $150,000 • Sales returns and allowances: $6,000 • Selling expenses: $15,000 • Cost of goods sold: $65,000 • Interest expense: $4,000 How much is the gross profit margin?