The Following Information Is for the Harding Company for 2012

question 107

Short Answer

The following information is for the Harding Company for 2012:
$\begin{array}{lll}&\text { Dec } 31&\text { Jan } 1\\\text { Raw Materials Inventory } & \$ 330 & \$ 340 \\\text { Work in Process } & \$ 340 & \$ 190 \\\text { Finished Goods } & \$ 350 & \$ 370\\\text { Direct materials used }&&\$1,130\\\text { Total Manufacturing costs charged to }\\\text { production of which } \$ 855 \text { was }\\\text { manufacturing overhead }&&\$3,340\\\\\text { Selling and administrative expenses }&&\$2,460\\\text { Sales revenue }&&\$6,390\end{array}$
Required:
(1) What is the cost of materials purchased?
(2) What is the cost of goods sold?
(3) What is gross profit?
(4) What is net profit?

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Definitions:

Copyrights

Legal protections granted to the creators of original works, giving them exclusive rights to use, distribute, and reproduce these works for a certain period.

Trademarks

Legal designations that protect brand names, logos, and other distinctive symbols associated with products and services to distinguish them in the market.

Property Rights

Legal rights to possess, use, and dispose of assets, including intellectual property or real estate.

Capital Goods

Physical assets that a company uses in the production process to manufacture products and services that consumers will later use.