Sineath Industries Had a Fire and Some of Its Accounting

question 107

Essay

Sineath Industries had a fire and some of its accounting records were destroyed. Available information is presented below for the year ended December 31, 2011.
Additional information is as follows:
Factory overhead is 150% of direct labor cost.
Finished goods inventory decreased by $18,000 during the year.
Work in process inventory increased by $12,000 during the year.
Calculate:
a) materials inventory, January 1, 2011
b) direct labor cost
c) factory overhead incurred
d) cost of goods sold

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Definitions:

Flexible Manufacturing

The direction of machinery by computers to adapt to different versions of similar operations.

Labor-Intensive

Describes industries or businesses that require a large amount of labor to produce goods or provide services, often resulting in higher labor costs.

Capital-Intensive

Refers to businesses or industries that require significant amounts of capital investment in machinery, equipment, or large-scale infrastructure to produce goods or services.