BUSN 11 Introduction to Business Student Edition
BUSN 11 Introduction to Business Student Edition
11th Edition
ISBN: 9781337407137
Author: Kelly
Publisher: Cengage Learning
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Chapter 2, Problem 3LO
Summary Introduction

To discuss: Free market system, supply and demand.

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Radium Tech Inc. has net sales of $320,000, cost of goods sold of $210,000, selling expenses of $15,000, and non-operating expenses of $6,000. What is the company's gross profit? Answer
What is the amount of cost of goods sold?
Alpha Corporation applies overhead costs to jobs on the basis of direct labor costs. Job O, which was started and completed during the current period, shows charges of $6,850 for direct materials, $10,300 for direct labor, and $6,710 for overhead on its job cost sheet. Job O, which is still in process at year-end, shows charges of $3,500 for direct materials and $5,800 for direct labor. a. Should any overhead cost be applied to Job O at year-end? b. How much overhead cost should be applied to Job O?
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