Davis Manufacturing Company had the following data:
Collections on account were $625,000.
Cost of goods sold was 68% of sales.
Direct materials purchased amounted to $90,000.
Factory overhead was 300% of the cost of direct labor.
Compute:
(a) Sales revenue (all sales were on account)
(b) Cost of goods sold
(c) Cost of goods manufactured
(d) Direct labor used
(e) Direct materials incurred
(f) Factory overhead incurred

Question

Davis Manufacturing Company had the following data:  
Collections on account were $625,000. 
Cost of goods sold was 68% of sales. 
Direct materials purchased amounted to $90,000. 
Factory overhead was 300% of the cost of direct labor. 
Compute: 
(a) Sales revenue (all sales were on account) 
(b) Cost of goods sold 
(c) Cost of goods manufactured 
(d) Direct labor used 
(e) Direct materials incurred 
(f) Factory overhead incurred

Quizplus · Accepted Answer

The Answer of Davis Manufacturing Company had the following data:  
Collections on account were $625,000. 
Cost of goods sold was 68% of sales. 
Direct materials purchased amounted to $90,000. 
Factory overhead was 300% of the cost of direct labor. 
Compute: 
(a) Sales revenue (all sales were on account) 
(b) Cost of goods sold 
(c) Cost of goods manufactured 
(d) Direct labor used 
(e) Direct materials incurred 
(f) Factory overhead incurred

Davis Manufacturing Company Had the Following Data