Problem 4-13 (IAA)Condo Company reported the following total debits and totalcredits in selected accounts after closing entries were posted:DebitsCreditsMaterialsGoods in processMaterial purchasesPurchase discountTransportation inDirect laborManufacturing overheadFinished goods600,000500,0002,500,000100,000200,0003,000,0001,500,000700,000200,000300,0002,500,000100,000200,0003,000,0001,500,000400,0001. What amount should be reported as cost of goodsmanufactured?a. 6,900,000b. 7,200,000c. 7,000,000d. 7,400,0002. What amount should be reported as cost of goods sold?a. 6,900,000b. 7,400,000c. 7,100,000d. 7,000,000140

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1. What amount should be reported as cost of goods manufactured? a. 6,900,000 b. 7,200,000 c. 7,000,000 d. 7,400,000 2. What amount should be reported as cost of goods sold? a. 6,900,000 b. 7,400,000 c. 7,100,000 d. 7,000,000

1. What amount should be reported as cost of goods manufactured? a. 6,900,000 b. 7,200,000 c. 7,000,000 d. 7,400,000 2. What amount should be reported as cost of goods sold? a. 6,900,000 b. 7,400,000 c. 7,100,000 d. 7,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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Problem 4-13 (IAA)
Condo Company reported the following total debits and total
credits in selected accounts after closing entries were posted:
Debits
Credits
Materials
Goods in process
Material purchases
Purchase discount
Transportation in
Direct labor
Manufacturing overhead
Finished goods
600,000
500,000
2,500,000
100,000
200,000
3,000,000
1,500,000
700,000
200,000
300,000
2,500,000
100,000
200,000
3,000,000
1,500,000
400,000
1. What amount should be reported as cost of goods
manufactured?
a. 6,900,000
b. 7,200,000
c. 7,000,000
d. 7,400,000
2. What amount should be reported as cost of goods sold?
a. 6,900,000
b. 7,400,000
c. 7,100,000
d. 7,000,000
140

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