Sales $710,000
Gross Profit 220,000
Indirect Labor 15,000
Indirect Materials 25,000
Other Factory Overhead 12,000
Materials Purchased 180,000
Total Maufacturing Costs for the Period 530,000
Materials Inventory, End of Period 20,000

Here's the question: What is the Direct Labor Cost? It says the answer is $343,000 but how do I find that? Also, is $490,000 right for Cost of Goods Sold? And is $135,000 correct for Direct Materials Cost? Thanks!! :o

Confused in ND :confused:

Sales
Less Gross Margin
Equals GoGS (so you got that right! )

As far as the other stuff goes just study the textbook schedule for GoGM, than you should find out that with the figures you got you can always incur the proper answers, now its may so you probably worked it out by now. If not mail me and I can provide you with a spreadsheet model to mess around with and see the relations between the figures

Regards