Freeman Furnishings has summarized its data as shown:Depreciation of factory building$106,000Factory real estate taxes$15,000Factory utility expenses$85,000Indirect materials$32,000Indirect labor$25,000Direct labor cost$84,000Direct labor hours incurred23,500Estimated direct labor hours24,000Raw material purchased$360,000Raw material, beginning inventory$20,000Raw material, ending inventory$26,000Work in process, beginning inventory$49,000Work in process, ending inventory$69,000Estimated overhead$276,000Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours.

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Business

Accounting

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

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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Question

Freeman Furnishings has summarized its data as shown:
Depreciation of factory building
$106,000
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
23,500
Estimated direct labor hours
24,000
Raw material purchased
$360,000
Raw material, beginning inventory
$20,000
Raw material, ending inventory
$26,000
Work in process, beginning inventory
$49,000
Work in process, ending inventory
$69,000
Estimated overhead
$276,000
Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours.

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