Question
Administrative salaries $33,000 Depreciation of factory equipment 26,000 Depreciation of delivery vehicles 9,000 Direct labor 69,000 Factory supplies used 13,000 Finished goods inventory, January 1 58,000 Finished goods inventory, December 31 69,000 Factory insurance 16,500 Interest expense 13,000 Factory utilities 15,000 Factory maintenance 8,500 Raw materials inventory, January 1 9,000 Raw materials inventory, December 31 5,000 Raw material purchases 126,000 Rent on factory building 26,000 Repairs of factory equipment 12,500 Sales commissions 38,500 Goods in process inventory, January 1 4,000 Goods in process inventory, December 31 3,000
Explanation / Answer
Materials = 9000 + 126,000 - 5000 = 130,000 ; Depreciation of factory equipment 26,000 Direct labor 69,000 Factory supplies used 13,000 Factory insurance 16,500 Factory utilities 15,000 Factory maintenance 8,500 Rent on factory building 26,000 Repairs of factory equipment 12,500 Adding all these = $316,500