Question

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Problem 6-10 (IAA) Condo Company reported the following total debits and total credits in selected accounts after closing entries were posted: Debits Credits Materials 600.000 200,000 Goods in process 500,000 300,000 Material purchases 2,500,000 2,500,000 Purchase discount 100,000 100.000 Transportation in 200,000 200,000 Direct labor 3,000,000 3,000,000 Manufacturing overhead 1,500,000 1,500,000 Finished goods 700,000 400,000 1. What is the cost of raw materials used? a. 2,800,000 b. 2,400.000 c. 3,200,000 d. 2,600,000 ASSE) a sto 2. What is the cost of goods manufactured? a. 6,900,000 b. 7,200,000 c. 7,000,000 d. 7,400,000 3. What is the cost of goods sold for the year? a. 6,900,000 b. 7,400,000 c. 7,100,000 d. 7,000,000 DO

Answer 1

Answer

Answer is A

1. Raw material Used

Opening Material - 600000

Add: Material Purchases - 2500000

Less: Purchases Discount - 100000 2400000

--------------- ----------------

3000000

Less: Closing Raw Materials 200000

---------------

Raw Material Used 2800000

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2. Cost of Goods Maufactured  

Direct Material       - 2800000

Direct Labour - 3000000

Manufacturing Overheads - 1500000

Transportation in - 200000

-----------------

7500000

Add: Begning Goods in Progress 500000

---------------

7700000

Less: Closing Goods In Progress 300000

----------------

Cost of Goods Manufactured 7700000

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3. Cost of Goods Sold

Begning Finished Goods - 700000

Add: Cost of Good Manufactured - 7700000

-------------

8400000

Less: Closing Finished Goods 400000

----------------

Cost of Good Sold 8000000

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