The Following Information Is Available for Carter Corporation

question 166

Essay

The following information is available for Carter Corporation:?
(1)Materials inventory decreased $4,000.
(2)Materials inventory on December 31 was 50% of materials inventory on January 1.
(3)Beginning work in process inventory was $145,000.
(4)Ending finished goods inventory was $65,000.
(5)Purchases of direct materials were $154,700.
(6)Direct materials used were 2.5 times the cost of direct labor.
(7)Total manufacturing costs incurred were $246,400, 80% of cost of goods manufactured and $156,000 less than cost of goods sold.?

Compute:
(a)Finished goods inventory on January 1
(b)Work in process inventory on December 31
(c)Direct labor incurred
(d)Factory overhead incurred
(e)Materials inventory on January 1
(f)Direct materials used

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Definitions:

Sales Adjusted

The revision of sales figures to account for returns, allowances for damaged goods, and discounts given.

Cash Basis

An accounting method where transactions are recorded when cash is received or paid, without regard to when the transactions occurred.

Selling and Administrative Expense

Costs incurred by a company from its selling activities and the management of the overall company, excluding production costs.

Cash Basis

A bookkeeping approach that only recognizes earnings and outgoings at the time cash is exchanged.