Adding Company applies overhead costs to products basedon a pre-determined overhead rate of 80% of direct laborcost. During July, Adding Company reported the followinginventory balances:July 1$37,000$54,000$42,000Direct materialsWork in processFinished goodsDuring July, Adding Company incurred the following costs:Advertising ...Depreciation, factory equipmentDirect materials purchased ...Production supervisor's salaryIndirect materials ...Rent..Sales commissions ..CEO's salary ..Insurance, factory building.Direct labor ....Factory utilitiesDepreciation, copier in sales office..........July 31$81,000$26,000$69,000...$ 46,000$ 21,000$297,000$ 73,000$ 35,000$ 89,000$306,000$ 29,000$285,000$ 37,000$ 22,000$ 60,000Forty-five percent of the rent relates to the factorywhile fifty-five percent of the rent relates to theadministrative building.Calculate Adding Company's cost of goods sold for Julyafter the overhead variance has been closed.

Name: Adding Company applies overhead costs to products basedon a pre-deter
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Description: Adding Company applies overhead costs to products basedon a pre-determined overhead rate of 80% of direct laborcost. During July, Adding Company reported the followinginventory balances:July 1$37,000$54,000$42,000Direct materialsWork in processFinis

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Adding Company applies overr cost products based on a pre-determined overhead rate of 80% of direct labor cost. During July, Adding Company reported the following inventory balances: July 1 $37,000 $54,000 $42,000 Direct materials Work in process Finished goods During July, Adding Company incurred the following costs: Advertising ... Depreciation, factory equipment Direct materials purchased Production supervisor's salary. Indirect materials .... $ 46,000 $ 21,000 $297,000 $ 73,000 $ 35,000 $ 89,000 $306,000 $ 29,000 $285,000 $ 37,000 Depreciation, copier in sales office ... $ 22,000 $ 60,000 Sales commissions CEO's salary .... Insurance, factory building.. Direct labor .... Factory utilities .... Rent July 31 $81,000 $26,000 $69,000 ... Forty-five percent of the rent relates to the factory while fifty-five percent of the rent relates to the administrative building. Calculate Adding Company's cost of goods sold for July

Adding Company applies overr cost products based on a pre-determined overhead rate of 80% of direct labor cost. During July, Adding Company reported the following inventory balances: July 1 $37,000 $54,000 $42,000 Direct materials Work in process Finished goods During July, Adding Company incurred the following costs: Advertising ... Depreciation, factory equipment Direct materials purchased Production supervisor's salary. Indirect materials .... $ 46,000 $ 21,000 $297,000 $ 73,000 $ 35,000 $ 89,000 $306,000 $ 29,000 $285,000 $ 37,000 Depreciation, copier in sales office ... $ 22,000 $ 60,000 Sales commissions CEO's salary .... Insurance, factory building.. Direct labor .... Factory utilities .... Rent July 31 $81,000 $26,000 $69,000 ... Forty-five percent of the rent relates to the factory while fifty-five percent of the rent relates to the administrative building. Calculate Adding Company's cost of goods sold for July

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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