Horizon Tech reported a cost of goods manufactured of $450,000, with the year- end balance sheet showing work in process of $85,000 and finished goods of $140,000. Additional information disclosed raw materials used in the production amounting to $75,000, direct labor of $120,000, and manufacturing overhead totaling $210,000. Furthermore, Horizon Tech spent $6,000 on employee recreational activities during the year. What must have been the company's beginning work in process? Orion Enterprises reported a cost of goods manufactured of $540,000. The firm's year-end balance sheet revealed work in process and finished goods inventory amounts of $92,000 and $144,000, respectively. Additional information disclosed raw materials used of $95,000, direct labor of $150,000, and manufacturing overhead of $250,000. Moreover, the company spent $7,000 on marketing and advertising during the year. What must have been the company's beginning work in process? A. $125,000 B. None of the other answers are correct. C. $400,000 D. $50,000
Horizon Tech reported a cost of goods manufactured of $450,000, with the year- end balance sheet showing work in process of $85,000 and finished goods of $140,000. Additional information disclosed raw materials used in the production amounting to $75,000, direct labor of $120,000, and manufacturing overhead totaling $210,000. Furthermore, Horizon Tech spent $6,000 on employee recreational activities during the year. What must have been the company's beginning work in process? Orion Enterprises reported a cost of goods manufactured of $540,000. The firm's year-end balance sheet revealed work in process and finished goods inventory amounts of $92,000 and $144,000, respectively. Additional information disclosed raw materials used of $95,000, direct labor of $150,000, and manufacturing overhead of $250,000. Moreover, the company spent $7,000 on marketing and advertising during the year. What must have been the company's beginning work in process? A. $125,000 B. None of the other answers are correct. C. $400,000 D. $50,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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