Davis Manufacturing Company Had the Following Data Collections on Account Were $625,000

question 81

Essay

Davis Manufacturing Company had the following data:?? $\begin{array}{lrr}&\text { January } 1&\text { December } 31\\\text { Accounts receivable } & \$ 27,000 & \$ 33,000 \\\text { Materials inventory } & 22,500 & 6,000 \\\text { Work in process inventory } & 70,200 & 48,000 \\\text { Finished goods inventory } & 3,000 & 15,000\end{array}$ Collections on account were $625,000.Cost of goods sold was 68% of sales.Direct materials purchased amounted to $90,000.Factory overhead was 300% of the cost of direct labor.
Compute:
(a)Sales revenue
(all sales were on account)
(b)Cost of goods sold
(c)Cost of goods manufactured
(d)Direct materials used
(e)Direct labor incurred
(f)Factory overhead incurred

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Definitions:

Establishing Credibility

The process of making oneself or one's statements believable or trustworthy.

Social Proof

A psychological phenomenon where people assume the actions of others in an attempt to reflect correct behavior for a given situation.

Social Proof

The psychological phenomenon where people assume the actions of others in an attempt to reflect correct behavior for a given situation.

Scarcity

A condition where resources are limited in comparison to the desires or needs.