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Mukundan Company uses a job-order costing system. Manufacturing overhead is applied to Work in Process inventory using a predetermined overhead rate. During the current month, the company's transactions included the following:
Direct materials issued to production $ 360,000
Indirect materials issued to priduction 32,000
Direct labor cost incurred 428,000
Manufacturing overhead cost applied 452,000
Manufacturing overhead cost incurred 500,000
Question 1: The company had no beginning or ending inventories in the current month. What was the cost of goods manufactured?
A) $1,320,000
B) $1,288,000
C) $1,240,000
D) $1,208,000
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