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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 $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.
Transcribed Image Text: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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