Dalton Company has a cycle time of 3 days, uses Raw and In Process account (RIP) and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion components are estimated and inventory account balances are adjusted accordingly. Raw materials is backflushed from RIP to Finished Goods. The following information is for the month of July: RIP beginning, including $20,560 of conversion cost, $42,600; FG beginning, including $22,000 of conversion cost; $45,000; Raw materials purchased on account, $356,000; RIP end, including $15,500 of conversion cost, $22,500; FG end, including $11,600 of conversion cost, $23,000. Direct labor $350,000; Factory overhead $196,150. What is the total amount of cost of goods sold? $951,250 $902,150 $989,750 $944,250
Dalton Company has a cycle time of 3 days, uses Raw and In Process account (RIP) and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion components are estimated and inventory account balances are adjusted accordingly. Raw materials is backflushed from RIP to Finished Goods. The following information is for the month of July: RIP beginning, including $20,560 of conversion cost, $42,600; FG beginning, including $22,000 of conversion cost; $45,000; Raw materials purchased on account, $356,000; RIP end, including $15,500 of conversion cost, $22,500; FG end, including $11,600 of conversion cost, $23,000. Direct labor $350,000; Factory
$951,250
$902,150
$989,750
$944,250
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