Cost flow relationships The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Sales $ 12,755,000
Gross profit 5,359,700
Indirect labor 422,600
Indirect materials 185,500
Other factory overhead 834,900
Materials purchased 4,251,600
Total manufacturing costs for the period 8,122,000
Materials inventory, end of period 298,900
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the following amounts. Round your answers to the nearest dollar. Cost of goods sold $fill in the blank 2 Direct materials cost $fill in the blank 3 Direct labor cost $fill in the

a. Cost of goods sold = Sales - Gross profit

Cost of goods sold = $12,755,000 - $5,359,700

Cost of goods sold = $7,395,300

b. Direct Material Cost = Materials purchased - Indirect materials - Materials inventory

Direct Material Cost = $4,251,600 - $185,500 - $298,900

Direct Material Cost = $3,767,200

c. Direct labor cost = Total manufacturing costs for the period - Direct materials cost - Other factory overhead - Indirect labor

Direct labor cost = $8,122,000 - $3,767,200 - $834,900 - $422,600

Direct labor cost = $3,097,300

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know