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kweigel89
Mar 2, 2008, 07:19 PM
In one of my online homework assignments we were giving a set amount of information and we had to figure out 5 different figures. I was absent the week we did this chapter and I am not able to figure out how to get the direct labor cost. I was able to get the other 4 answers as well. In my book, I cannot find an example on how to get it, all the examples already have the direct labor cost stated.

Here is the question:

Cost flow relationships

The following information is available for the first month of operations of Brown Company, a manufacturer of mechanical pencils:

Sales --------------------------------------------------$600,000
Gross Profit --------------------------------------------350,000
Cost of goods manufactured -------------------------300,000
Indirect labor ------------------------------------------130,000
Factory depreciation ------------------------------------20,000
Matierals purchased -----------------------------------185,000
Total manufacturing costs for the period ------------345,000
Materials Inventory -------------------------------------25,000

Using the above information, determine the following missing amounts:

a. Cost of goods sold: $250,000

b. Finished goods inventory: $50,000

c. Direct materials cost: $160,000

d. Direct labor cost: $

e. Work in process inventory: $45,000

I got everything but answer d. I do not know where to begin to get the figure.

All help would be much appreciated. An explanation on how to get it, anything!

Thanks, all!

boudiay
Nov 6, 2010, 04:30 AM
direct labor
let say X
X+ 160000 + 150000 = 345000
X + 310000 = 345000
X = 345 000 - 310000
X = 35000