Alden Company recorded the following transactions for the just completed month. The company had no beginning inventories. (a) $72,000 in raw materials were purchased for cash. (b) $67,000 in raw materials were requisitioned for use in production. Of this amount, $56,000 was for direct materials and the remainder was for indirect materials. (c) Total labor wages of $112,000 were incurred and paid in cash. Of this amount, $94,000 was for direct labor and $18,000 was for indirect labor. (d) Additional manufacturing overhead costs of $108,000 were incurred and paid in cash. (e) Manufacturing overhead costs of $130,000 were applied to jobs using the company's predetermined overhead rate. (f) Jobs costing $260,000 were completed. (g) Products costing $250,000 were sold on account for $325,000. (h) The underapplied or overapplied overhead for the month was closed out to Cost of Goods So
Alden Company recorded the following transactions for the just completed month. The company had no beginning inventories.
(a) $72,000 in raw materials were purchased for cash.
(b) $67,000 in raw materials were requisitioned for use in production. Of this amount, $56,000 was for direct materials and the remainder was for indirect materials.
(c) Total labor wages of $112,000 were incurred and paid in cash. Of this amount, $94,000 was for direct labor and $18,000 was for indirect labor.
(d) Additional
(e) Manufacturing overhead costs of $130,000 were applied to jobs using the company's predetermined overhead rate.
(f)
(g) Products costing $250,000 were sold on account for $325,000.
(h) The underapplied or overapplied overhead for the month was closed out to Cost of Goods Sold.
Required:
a.
b. Determine the cost of goods manufactured.
c. Determine the cost of goods sold (after closing Manufacturing Overhead).
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