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:

Void

A contract or legal agreement that is null and has no legal force or effect.

Appointed Guardian

A person legally designated to manage the personal and/or financial affairs of another individual who is unable to do so.

Intoxicated Persons

Individuals whose normal capacity to act or make decisions is significantly impaired due to the consumption of alcohol or drugs.

Alcohol

A chemical compound that is commonly found in drinks such as beer, wine, and spirits, and is known for its psychoactive effects.