The Information Below Has Been Taken from the Cost Records

question 132

Essay

The information below has been taken from the cost records of Toro Corp. for the past year:
$\begin{array}{llr} \text { Raw materials used in production } &\$572\\ \text {Total manufacturing costs charged to production during the year (includes } &\\ \text { \( \$ 255\) of factory overhead) } &1,095\\ \text {Cost of goods available for sale } &1,415\\ \text { Selling \( \mathcal{\&} \) administrative expenses} &255\\\end{array}$


$$\begin{array} { | l | c | c | } \hline \text { Inventories: } & \text { Beginning } & \text { Ending } \\\hline \text { Direct materials } & 175 & 155 \\\hline \text { Work in process } & 220 & 190 \\\hline \text { Finished goods } & 290 & 310 \\\hline\end{array}$$
Required:
(a) Calculate the cost of direct materials purchased during the year.
(b) Calculate the direct labor costs charged to production during the year.
(c) Calculate the cost of goods manufactured during the year.
(d) Calculate the cost of goods sold for the year.

Grasp the concept of working with paragraph indents and spacings to format document contents effectively.

Acquire the skills to use document formatting tools to align and position tables and text.

Understand how to insert and manipulate graphical elements in a document.

Recognize the role and application of document properties and how to work with them in headers.

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Definitions:

Intellectual Property

Legal rights given to individuals or organizations over their creations, inventions, and ideas, such as patents, copyrights, trademarks, and trade secrets.

Economy of Scope

Cost efficiencies derived from variety, rather than volume, where producing a wider range of products can lead to lower average costs.

Limited Quantities

Refers to the availability of a product being restricted to a certain number, often used as a marketing strategy to increase demand.

Large Numbers

Quantities that are significantly higher than what is typical, often used to denote scale in statistical or numerical contexts.