Reference no: EM132654060

Question - West Shoe Company makes loafers. During the most recent year, West incurred total manufacturing costs of $26,000,000. Of this amount, $1,600,000 was direct materials used and $19,800,000 was direct labor. Beginning balances for the year were Direct Materials, $500,000; Work-in-Process Inventory, $1,100,000; and Finished Goods Inventory, $1,300,000. At the end of the year, balances were Direct Materials, $900,000; Work-in-Process Inventory, $1,300,000; and Finished Goods Inventory, $780,000.

Analyze the inventory accounts to determine:

1. Cost of direct materials purchased during the year.

2. Cost of goods manufactured for the year.

3. Cost of goods sold for the year.