The Following Information Is Available for the First Month of Operations

question 88

Essay

The following information is available for the first month of operations of Deer Inc., a manufacturer of sports apparel:
$\begin{array}{ll}\$ 1,500,000 & \text { Sales } \\410,000 & \text { Gross profit } \\125,000 & \text { Indirect labor } \\30,000 & \text { Indirect materials } \\415,000 & \text { Other factory overhead } \\700,000 & \text { Materials purchased } \\1,600,000 & \text { Total manufacturing costs for the period } \\35,000 & \text { Materials inventory, end of period }\end{array}$ Using the given information, determine the following:
a. Cost of goods sold
b. Direct materials cost
c. Direct labor cost

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Definitions:

Medullary Cavity

The central cavity of bone shafts where red and/or yellow marrow (blood cell production or fat storage, respectively) is stored; pivotal in the hemopoietic process and energy storage.

Articular Cartilage

A smooth, white tissue that covers the ends of bones where they come together to form joints, enabling low-friction movement.

Long Bones

Bones that are longer than they are wide, found in the arms, legs, hands, and feet, playing a major role in movement.

Periosteum

Surrounding the bones, apart from the joint surfaces, is a compact layer of vascular connective tissue.