Saved Required information [The following information applies to the questions displayed below.] McAllister, Inc., employs a normal costing system. The following information pertains to the year just ended. • Total manufacturing costs were $2,500,000. . Cost of goods manufactured was $2,425,000. . Applied manufacturing overhead was 30 percent of total manufacturing costs. . Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost. • Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31. 2. Calculate the total cost of direct materialused during the year

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Calculate the total cost of direct material used during the year
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[The following information applies to the questions displayed below.]
McAllister, Inc., employs a normal costing system. The following information pertains to the year just ended.
• Total manufacturing costs were $2,500,000.
. Cost of goods manufactured was $2,425,000.
.
Applied manufacturing overhead was 30 percent of total manufacturing costs.
.
Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost.
• Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31.
2. Calculate the total cost of direct material used during the year.
Direct-material cost
S
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Transcribed Image Text:Saved Required information [The following information applies to the questions displayed below.] McAllister, Inc., employs a normal costing system. The following information pertains to the year just ended. • Total manufacturing costs were $2,500,000. . Cost of goods manufactured was $2,425,000. . Applied manufacturing overhead was 30 percent of total manufacturing costs. . Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost. • Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31. 2. Calculate the total cost of direct material used during the year. Direct-material cost S < Prev 6 7 Next > of 14 *** HH
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