During March of the current year, TRH Company purchased $3,500,000 raw materials. During the month, TRH incurred $2,040,000 direct labor cost and applied 80% of direct labor cost. During the same month, there were changes in inventories as follows: Increase in raw materials $100,000; Decrease in work in process $150,000 and decrease in finished goods 75,000. If the goods available for sale is $7,500,000, what is the amount of finished goods at March 1? $0 $75,000 $278,000 $203,000
During March of the current year, TRH Company purchased $3,500,000 raw materials. During the month, TRH incurred $2,040,000 direct labor cost and applied 80% of direct labor cost. During the same month, there were changes in inventories as follows: Increase in raw materials $100,000; Decrease in work in process $150,000 and decrease in finished goods 75,000. If the goods available for sale is $7,500,000, what is the amount of finished goods at March 1? $0 $75,000 $278,000 $203,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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During March of the current year, TRH Company purchased $3,500,000 raw materials. During the month, TRH incurred $2,040,000 direct labor cost and applied 80% of direct labor cost. During the same month, there were changes in inventories as follows: Increase in raw materials $100,000; Decrease in work in process $150,000 and decrease in finished goods 75,000. If the goods available for sale is $7,500,000, what is the amount of finished goods at March 1?
$0
$75,000
$278,000
$203,000
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