How to get the Direct Labor Cost
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!
