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Question - On July 1, a Company's In Progress account showed an initial balance of $ 9,000. The Materials Inventory account had an initial balance of $ 40,000. The July production was as follows: a) Raw materials cost $ 28,800 requested from production, b) The production-related payroll was $ 10,600, of which $ 2,600 related to indirect work, c) indirect materials were purchased and used at a cost of $ 8,400, and d) overhead industrial costs were charged at a rate of 120% the cost of direct labor.
1. Record the cost of materials, labor, and overhead in T accounts.
2. Calculate the final balance of the Production in Progress account. Assume a $ 45,000 transfer to the Finished Products account over the period.
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