The Following Data Relates to the Sunshine Company Required:
(A) Compute the Direct Materials Used During the Year

question 61

Essay

The following data relates to the Sunshine Company:
$\begin{array}{llr} \text {Direct Materials Inventory, Beginning } &\$40\\ \text {Direct Materials Inventory, Ending } &50\\ \text { Direct Materials Purchases} &210\\ \text { Direct Labor } &350\\ \text { Finished Goods Inventory, Beginning } &100\\ \text {Finished Goods Inventory, Ending } &95\\ \text { Factory overhead } &153\\ \text { Work-in-Process Inventory, Beginning } &65\\ \text {Work-in-Process Inventory, Ending } &80\\\end{array}$

Required:
(a) Compute the direct materials used during the year.
(b) Compute the cost of goods manufactured during the year.
(c) Compute the cost of goods sold during the year.

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Definitions:

Null Hypotheses

In statistical analysis, assumptions made for the purpose of testing, asserting no significant difference or effect is expected.

Alternative Hypotheses

In statistical hypothesis testing, it is the hypothesis that proposes a difference or effect, in contrast to the null hypothesis which proposes no effect or relationship.

Type II Error

Refers to the error that occurs when a statistical test fails to reject a false null hypothesis.

Type I Error

Falsely rejecting a true null hypothesis, widely recognized as a "false positive."