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Question - During the year, a company purchased raw materials of $77,321 and incurred direct labor costs of $125,900. Overhead is applied at the rate of 75% of the direct labor cost. These are the inventory balances:
Beginning
Ending
Raw materials inventory
$15,394
$17,432
Work in process inventory
57,304
53,721
Finished goods inventory
120,432
132,432
Required - Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.
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