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Account balances from Magnet Manufacturing Companys accounting records for the month ended June 30, 2020appear below:

Factory Depreciation Expense.................................... 6,750

Finished Goods Inventory, June 30........................ $94,500

Sales Salaries Expense.............................................. 31,250

Income Tax Expense................................................. 50,000

Finished Goods Inventory, June 1............................ 40,500

Direct labour............................................................ 162,500

Office Salaries Expense.................................... 86,000

Raw Materials Purchases........................................ 593,750

Work in process Inventory, June 1........................... 90,000

Factory Utilities Expense............................................ 7,125

Indirect Labour.......................................................... 19,625

Raw Materials Inventory, June 30............................ 28,750

Work in process Inventory, June 30......................... 71,250

Factory Supervisory Salaries................................... 100,000

Office Depreciation expense ............................ 5,000

Raw Materials Inventory, June 1.............................. 20,625

Sales Returns and Allowances................................... 3,375

Instructions:

a) Calculate direct material cost

b) Calculate manufacturing overhead cost

c) Calculate total manufacturing cost

c) Calculate cost of goods manufactured

d) Calculate cost of goods sold

e) Assume each magnet is sold at $5 and 300,000 were sold during the month of June. Calculate gross margin.

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