Reference no: EM132629133
Baker Co., a manufacturer, had inventories at the beginning and end of its current year as follows:
Raw materials ........
Beginning $22,000 Ending $30,000
Work in process .....
Beginning 40,000 Ending. 8,000
Finished goods ...
Beginning 25,000 Ending 18,000
During the year, the following costs and expenses were incurred:
Raw materials purchased ........$300,000
Direct labor cost .......................120,000
Indirect factory labor ..............60,000
Taxes and depreciation on factory building ......20,000
Taxes and depreciation on sales room and office ....15,000
Sales salaries ..............................40,000
Office salaries ............................24,000
Utilities (60% applicable to factory, 20% to sales room,
and 20% to office) .......................50,000
Problem 1: Compute for the Cost of Goods Sold