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The following information was drawn from the accounting records of Vanner Manufacturing Company.
During the accounting period, Vanner paid $16,000 to purchase raw materials, $15,000 for direct labor, and $11,000 for overhead costs. Assume that actual overhead equaled applied overhead.
Required:
a. Determine the amount of raw materials used.b. Determine the amount of cost of goods manufactured (the amount transferred from Work in Process Inventory to Finished Goods Inventory).c. Assuming sales revenue of $76,800, determine the amount of gross margin.
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