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Problem - Benson Inc.'s accounting records reflect the following inventories:
Dec. 31, 2012
Dec. 31, 2013
Raw materials inventory
$80,000
$64,000
Work in process inventory
104,000
116,000
Finished goods inventory
100,000
92,000
During 2013, Benson purchased $1,160,000 of raw materials, incurred direct labor costs of $200,000, and incurred manufacturing overhead totaling $128,000. Assume Benson's cost of goods manufactured for 2013 amounted to $1,360,000. How much would it report as cost of goods sold for the year?
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