Question

Use the information below to answer the following question(s).

Jupiter Inc. had the following activities in the year:

Direct materials balance:
Beginning inventory	$86,000
Purchases	306,000
Ending inventory	36,000
Direct manufacturing labour	80,000
Manufacturing overhead	60,000
Ending work in process inventory	20,000
Beginning work in process inventory	4,000
Ending finished goods inventory	80,000
Beginning finished goods inventory	120,000

1. What is Jupiter's cost of direct materials used during the year?
   1. $356,000
   2. $364,000
   3. $308,000
   4. $360,000
   5. $372,000

2. What is Jupiter's cost of goods sold?
   1. $516,000
   2. $464,000
   3. $440,000
   4. $400,000
   5. $520,000

3. What is Jupiter's cost of goods manufactured?
   1. $536,000
   2. $476,000
   3. $480,000
   4. $496,000
   5. $512,000

Answer 1

Solution:

1) Cost of direct material-$3, 56,000

2) Cost of goods sold-$5, 20,000

3) Cost of goods manufacured -$4, 80,000