The Following Information Is Available for Carter Corporation

question 120

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.
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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)Materials inventory on December 31
(g)Direct materials used
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Definitions:

Price Floor

A government or regulatory imposed minimum price above the equilibrium price, preventing prices from dropping too low.

Usury Laws

Regulations designed to protect consumers by capping the interest rate that lenders can charge on credit.

Loanable Funds

The supply of money that savers have made available to borrowers.

Usury Laws

Regulations governing the maximum interest rate that can be charged on loans, intended to protect consumers from excessively high rates.