A&B Corporation reported a cost of goods manufactured of $610,000. The firm's year-end balance sheet shows work in process and finished goods inventory amounts of $90,000 and $156,000, respectively. Additional data reveals that raw materials used in production were $100,000, direct labor was $160,000, and manufacturing overhead totaled $280,000. Furthermore, the company purchased office supplies worth $5,000, which is unrelated to the manufacturing process. What must have been the company's beginning work in process? Delta Industries reported a cost of goods manufactured of $720,000. The firm's balance sheet showed work in process and finished goods inventory amounts of $110,000 and $180,000, respectively. Supplemental information revealed raw materials used of $130,000, direct labor of $190,000, and manufacturing overhead of $300,000. Additionally, the firm made a donation of $8,000 to charity during the year. What must have been the company's beginning work in process? A. $90,000 B. None of the other answers are correct. C. $600,000 D. $70,000

A&B Corporation reported a cost of goods manufactured of $610,000. The firm's year-end balance sheet shows work in process and finished goods inventory amounts of $90,000 and $156,000, respectively. Additional data reveals that raw materials used in production were $100,000, direct labor was $160,000, and manufacturing overhead totaled $280,000. Furthermore, the company purchased office supplies worth $5,000, which is unrelated to the manufacturing process. What must have been the company's beginning work in process? Delta Industries reported a cost of goods manufactured of $720,000. The firm's balance sheet showed work in process and finished goods inventory amounts of $110,000 and $180,000, respectively. Supplemental information revealed raw materials used of $130,000, direct labor of $190,000, and manufacturing overhead of $300,000. Additionally, the firm made a donation of $8,000 to charity during the year. What must have been the company's beginning work in process? A. $90,000 B. None of the other answers are correct. C. $600,000 D. $70,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.
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