Donahoo Manufacturing Company Had the Following Information Available for the Year

question 96

Essay

Donahoo Manufacturing Company had the following information available for the year:
$\begin{array}{ll}\text { Direct materials used } & \$ 44,000 \\\text { Direct labor costs incurred } & \$ 7,700 \\\text { Indirect labor costs incurred } & \$ 3,030 \\\text { Depreciation Expense on factory building } & \$ 19,000 \\\text { Depreciation Expense on factory machines } & \$ 100,000\\\text { Insurance Expense on factory building } & \$ 1,200 \\\text { Depreciation Expense on office equipment } & \$ 12,000 \\\text { Insurance expense on corporate office } & \$ 1,300 \\\text { Supplies Expense for factory } & \$ 5,000 \\\text { Utilities Expense for factory } & \$ 2,000\\ \text {Wages Expense for factory janitors }&\$ 5,000 \\ \text {Lease Expense for factory computers }&\$ 10,000 \\ \text {Finished Goods Inventory, end of year }&\$ 32,000 \\ \text {Finished Goods Inventory, beginning of year }&\$ 12,000\end{array}$
Work-In-Process Inventories and Raw Materials Inventories were negligible at the beginning and end of the year.
Required:
A) Compute the Cost of Goods Manufactured for the year.
B) Compute the Cost of Goods Sold for the year.

• A) Compute the Cost of Goods Manufactured for the year.
• B) Compute the Cost of Goods Sold for the year.

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Definitions:

Self-congratulation

The act of praising or expressing pride in oneself for one's achievements or qualities, often without external acknowledgment.

Difficult Assignment

A task or project that is particularly challenging due to its complexity, scope, or the required skill set.

Punishment

A consequence or penalty imposed for unacceptable behavior, meant to discourage that behavior in the future.

Turnover

The rate at which employees leave a company and are replaced by new ones.