Draper Textiles Inc Required:
A

question 9

Essay

Draper Textiles Inc. had the following data for the period just ended. $\begin{array} { l r } \text { Work in process - Jan 1 } & \$ 40,000 \\\text { Work in process - Dec 31 } & 52,000 \\\text { Finished goods - Jan 1 } & 60,000 \\\text { Finished goods - Dec 31 } & 81,000 \\\text { Direct materials used } & 106,000 \\\text { Direct labour } & 300,000 \\\text { Factory depreciation } & 90,000 \\\text { Sales } & 1,000,000 \\\text { Advertising expense } & 50,000 \\\text { Factory utilities } & 20,000 \\\text { Indirect materials } & 20,000 \\\text { Indirect labour } & 30,000\end{array}$ Required:
A. Calculate Draper's cost of goods manufactured.
B. Calculate Draper's cost of goods sold.

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Definitions:

Private Placements

Securities sold directly to a small number of private investors, rather than through a public offering.

SEC Rule 144A

This SEC rule provides a regulatory framework that allows the sale of privately placed securities to qualified institutional buyers without the need for public registration.

Circuit Breakers

Mechanisms used in stock exchanges to temporarily halt trading on an exchange to curb panic-selling, triggered by drastic drops in value.

Flash Crashes

Rapid, deep, and volatile market declines, usually occurring within a very short time period, often caused by automated trading.