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  3. the following cost data relate to the manufacturin

The following cost data relate to the manufacturing activities for the company: ...

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Accounting

The following cost data relate to the manufacturing activities for the company:

Finished goods Inventory, Beginning

$18,000

Finished goods Inventory, ending

$12,750

Administrative expenses

$20,000

Manufacturing overhead cost incurred

$48,000

Purchase of raw materials

$32,000

Raw materials inventory, beginning

$8,000

Raw materials inventory, ending

$7,000

Direct labor cost

$40,000

Work in progress, beginning

$6,000

Work in progress inventory, ending

$7,500

Sales

$350,000

Selling expenses

$35,000

The company uses a predetermined overhead rate of to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,000 machine hours was recorded for the year. All raw materials ultimately become direct materials-none are classified as indirect materials.

Calculate the following:

1. Raw materials used in production

2. Manufactured Overhead applied

3. Total manufacturing cost

4. Cost of goods manufactured

5. Unadjusted Cost of goods sold

6. Adjusted Cost of Goods Sold

7. Gross margin

8. Net operating income

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