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Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours.

Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours.

FINANCIAL ACCOUNTING
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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Freeman Furnishings has summarized its data as shown: Depreciation of factory building $77,500 Factory real estate taxes $15,000 Factory utility expenses $85,000 Indirect materials $32,000 Indirect labor $25,000 Direct labor cost $84,000 Direct labor hours incurred 21,500 Estimated direct labor hours 22,000 Raw material purchased Raw material, beginning inventory Raw material, ending inventory Work in process, beginning inventory Work in process, ending inventory Estimated overhead Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours. $370,000 $40,000 $29,000 $52,000 $67,000 $247,500
Transcribed Image Text:Freeman Furnishings has summarized its data as shown: Depreciation of factory building $77,500 Factory real estate taxes $15,000 Factory utility expenses $85,000 Indirect materials $32,000 Indirect labor $25,000 Direct labor cost $84,000 Direct labor hours incurred 21,500 Estimated direct labor hours 22,000 Raw material purchased Raw material, beginning inventory Raw material, ending inventory Work in process, beginning inventory Work in process, ending inventory Estimated overhead Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours. $370,000 $40,000 $29,000 $52,000 $67,000 $247,500
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