At the beginning of 2012, Conway Manufacturing Company had the following account balances: WIP Inventory - DR 2,000 FG Inventory - DR 8,000 Manufacturing overhead Dr – 0 ( All T accounts) During the year the following transactions took place: Direct materials placed in production $80,000 Direct labor incurred $190,00 Manufacturing OH incurred $300,000 Manufacturing OH allocated to production $295,000 Costs of jobs completed $500,000 Selling price of jobs sold $750,000 Cost of jobs sold $440,000 As a result of these transactions how gross profit will Conway report? A) 310,000 B) 305,000 C) 515,000 D) 345,000
At the beginning of 2012, Conway Manufacturing Company had the following account balances:
WIP Inventory - DR 2,000 FG Inventory - DR 8,000 Manufacturing
During the year the following transactions took place:
Direct materials placed in production $80,000
Direct labor incurred $190,00
Manufacturing OH incurred $300,000
Manufacturing OH allocated to production $295,000
Costs of jobs completed $500,000
Selling price of jobs sold $750,000
Cost of jobs sold $440,000
As a result of these transactions how gross profit will Conway report?
A) 310,000
B) 305,000
C) 515,000
D) 345,000
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