The Following Information Is Available for the LBB Company for the Year

question 113

Essay

The following information is available for the LBB Company for the year 2011:
$\begin{array}{|l|c|c|}\hline & 12 / 31 & 1 / 1 \\\hline \text { Raw materials inventory } & & 0 \\\hline \text { Work in process inventory } & \$ 70 & \$ 80 \\\hline \text { Finished goods inventory } & \$ 75 & \$ 60 \\\hline\\\hline \text { Direct materials used } & \$ 375 \\\hline \text { Net sales } & \$ 2,585 \\\hline \text { Direct labor } & \$ 500 \\\hline \text { Manufacturing overhead } & \$ 1,000\\\hline \text { General \& administrative } & \\\hline \text { expenses } & \$ 300 \\\hline \text { Selling expenses } & \$ 300 \\\hline \text { Income tax paid } & \$ 100 \\\hline\end{array}$
Required
(1) What are total manufacturing costs charged to work in process?
(2) What are costs of finished goods manufactured?
(3) What is the cost of goods sold?
(4) What is gross profit?
(5) What is operating income?

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