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Diggens Inc. makes eveningwear for men and women. The following information was gathered from the...

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Accounting

Diggens Inc. makes eveningwear for men and women. The following information was gathered from the company records for the year, the first year of company operations. Work-in-Process (WIP) Inventory at the end of the year was $15,750. (Assume actual overhead is included in WIP Inventory).

Direct material purchased on account $555,000

Direct material issued to production 447,000

Indirect manufacturing supplies purchased on account 98,750

Indirect manufacturing supplies used for production 34,850

Direct labor payroll accrued 322,500

Indirect labor payroll accrued 93,000

Prepaid factory insurance expired 3,000

Factory utilities paid 21,450

Depreciation on factory equipment recorded 32,550

Factory rent paid 126,000

Sales (all on account) 1,431,000

The companys gross profit rate for the year was 35 percent.

a. Compute cost of goods sold for the year.

b. What was the total cost of goods manufactured for the year?

c. What is Finished Goods Inventory at December 31?

d. If Operating Income was $125,000, what were total selling and administrative expenses

for the year?

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