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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Definitions:

Poisonous Solid

A solid substance that is harmful or lethal to living organisms when ingested, inhaled, or absorbed.

Copper Electroplating

A process of coating objects with a thin layer of copper by using an electric current to reduce dissolved copper ions onto an electrically conductive surface.

Copper Sulfate

A chemical compound formed by combining copper, sulfur, and oxygen (CuSO4).

Metallic Salt

A chemical compound that is generally in a crystal state and exhibits the properties of a metal.