| Sandpaper | $ 32,000 | Leasing costs-plant | $ 384,000 |
| Materials handling | 320,000 | Depreciation-equipment | 224,000 |
| Coolants & lubricants | 22,400 | Property taxes-equipment | 32,000 |
| Indirect manufacturing labor | 275,200 | Fire insurance-equipment | 16,000 |
| Direct manufacturing labor | 2,176,000 | Direct material purchases | 3,140,000 |
| Direct materials, 1/1/18 | 348,000 | Direct materials, 12/31/18 | 280,000 |
| Finished goods, 1/1/18 | 672,000 | Sales revenue | 12,800,000 |
| Finished goods, 12/31/18 | 1,280,000 | Sales commissions | 640,000 |
| Work-in-process, 1/1/18 | 96,000 | Sales salaries | 576,000 |
| Work-in-process, 12/31/18 | 64,000 | Advertising costs | 480,000 |
| Administration costs | 800,000 |
| a. | What is the amount of direct materials used during 2018? |
| b. | What manufacturing costs were added to WIP during 2018? |
| c. | What is cost of goods manufactured for 2018? |
| d. | What is cost of goods sold for 2018? |
| a. | $348,000 + $3,140,000 - $280,000 = $3,208,000 |
| b. | $3,208,000 + $2,176,000 + $32,000 + $320,000 + $22,400 + $275,200 + $384,000 + $224,000 + $32,000 |
| c. | $6,,689,600 + $96,000 - $64,000 = $6,529,600 |
| d. | $6,529,600 + $672,000 - $1,280,000 = $5,921,600 |