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The Following Information Is for the Harding Company for 2012

Question 106

Short Answer

The following information is for the Harding Company for 2012:
 Dec 31 Jan 1 Raw Materials Inventory $330$340 Work in Process $340$190 Finished Goods $350$370 Direct materials used $1,130 Total Manufacturing costs charged to  production of which $855 was  manufacturing overhead $3,340 Selling and administrative expenses $2,460 Sales revenue $6,390\begin{array}{lll}&\text { Dec } 31&\text { Jan } 1\\\text { Raw Materials Inventory } & \$ 330 & \$ 340 \\\text { Work in Process } & \$ 340 & \$ 190 \\\text { Finished Goods } & \$ 350 & \$ 370\\\text { Direct materials used }&&\$1,130\\\text { Total Manufacturing costs charged to }\\\text { production of which } \$ 855 \text { was }\\\text { manufacturing overhead }&&\$3,340\\\\\text { Selling and administrative expenses }&&\$2,460\\\text { Sales revenue }&&\$6,390\end{array}
Required:
(1) What is the cost of materials purchased?
(2) What is the cost of goods sold?
(3) What is gross profit?
(4) What is net profit?

Correct Answer:

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(1) $1,120...

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