Question

A company had the following operations: Inventories Raw materials (all direct) Work in process Finished goods beginning balance $39,000 $22,500 $67,500 ending balance $37,500 $15,000 $94,000 Additional information: Raw materials purchased $ 105,000 Direct manufacturing labor payroll (DL cost) $ 75,000 Direct manufacturing wage rate per hour $ 12/DLH Predetermined overhead rate per direct labor hour $ 16/DLH How much was the Raleigh's unadjusted cost of goods sold for the period? (All answers are whole numbers -- unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease or loss of one thousand.) Cost of goods sold (unadjusted) = $

Answer 1

. calculation of cost of goods sold Particular $ opening stock Of Raw matrial 39,000 Add: purchases 105,000 Lewe closing stock of raw matrial (37,500) Ram Materal consumed 106,500 (+) Direct labor 75000 (+) Manufacturing cost (Not 1) 100.000 Total Manufacturing cost 281,500 (4) Opening stock of WIP 22,500 (-) closing stock of Will (15,000) Cost of goods manufactured 289,000 CHOpening stock of finished goods 67,500 E) closing stock of finished goods (94,000) Cost of goods sold 262.500.

Note 1: calcation of Manufacturing cost Direct labour hrs Direct labor cost Direct labor rate $75,000 12. 6250 hrs Overhead 6250hr x $16 $100,000

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