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Problem
Treston Co. has its first month of operations and starts without any inventory. During the first month, the following transactions occurred:
1. Purchased raw materials for $3500 on account.
2. Used raw materials for various jobs:
Job 1
$700
Job 2
$ 800
Job 3
$ 900
Job 4
$ 700
Factory Use
$ 240
3. Used direct labor for various jobs:
$850
$1,000
$1,150
$ 600
4. The predetermined overhead rate is 70% of DL costs.
5. Jobs 1, 2, and 3 are completed.
6. Jobs 2 and 3 are sold on account. The selling price of each is determined as a markup of 30% on manufacturing cost.
Calculate the following:
Ending materials Ending work in process Ending finished goods Cost of goods manufactured Cost of goods sold Gross profit.
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