Fairbain Corporation was newly formed early in 20X1. The following information relates to the full year: Raw...

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Fairbain Corporation was newly formed early in 20X1. Thefollowing information relates to the full year:
Raw materials purchased (net) $3,000,000 Direct labor costs2,000,000 Factory overhead 1,500,000 Selling, general &administrative 700,000
80% of the available raw material was transferred intoproduction. 75% of the work in process was completed. 90% of thefinished goods were sold. 10% of factory overhead related todepreciation. 20% of SG&A related to depreciation.
(a) How much is in ending inventory for (1) raw materials, (2)work in process, and (3) finished goods?
(b) How much is in (1) cost of goods sold and (2) SG&Aexpense for the period?
(c) How much of the total depreciation for the period is chargedagainst income during the period?

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Solution Ending Inventory Balance 1 Raw Materials 30000002400000 600000 Direct Materials b 2400000 a 3000000 Bal 600000 2 Work InProcess 1100000 Work In Process a 2400000 Finished Goods 3300000 b 2000000 440000075 Balance 1100000 3 Finished Goods WIP 75 440000075 330000 Finished Goods See Answer

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