Problem 1: The following selected information is provided about a manufacturing company: Raw material purchases Direct labor Overhead applied Actual overhead Selling and administrative salaries Other selling and administrative expenses Sales revenue Inventory data: Raw material Work in process Finished goods 800,000 415,000 730,000 745,000 500,000 185,000 5,000,000 January 1 75,000 105,000 120,000 December 31 100,000 140,000 125,000 Calculate the cost of goods sold. Assume that under/over applied overhead is closed directly to cost of goods sold.

Problem 1: The following selected information is provided about a manufacturing company: Raw material purchases Direct labor Overhead applied Actual overhead Selling and administrative salaries Other selling and administrative expenses Sales revenue Inventory data: Raw material Work in process Finished goods 800,000 415,000 730,000 745,000 500,000 185,000 5,000,000 January 1 75,000 105,000 120,000 December 31 100,000 140,000 125,000 Calculate the cost of goods sold. Assume that under/over applied overhead is closed directly to cost of goods sold.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter10: Accounting Systems For Manufacturing Operations

Section: Chapter Questions

Problem 8CDQ: Describe the Source 01 the data for increasing Work in Process for (a) direct materials, (b) direct...

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Question

Problem 1: The following selected information is provided about a manufacturing company:
Raw material purchases
Direct labor
Overhead applied
Actual overhead
Selling and administrative salaries
Other selling and administrative expenses
Sales revenue
Inventory data:
Raw material
Work in process
Finished goods
800,000
415,000
730,000
745,000
500,000
185,000
5,000,000
January 1
75,000
105,000
120,000
December 31
100,000
140,000
125,000
Calculate the cost of goods sold. Assume that under/over applied overhead is closed directly to
cost of goods sold.

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