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The following transactions were incurred by Dimasi Industries during January 2013:
a. Prepare journal entries for these transactions using a single overhead account for both variable and fixed overhead. The Raw Material Inventory account contains only direct material; indirect material costs are recorded in Supplies Inventory.
b. If Work in Process Inventory had a beginning balance of $18,900 and an ending balance of $59,600, what amount of manufacturing overhead was included in Work in Process Inventory during January 2013?
How could management use inventory to manipulate income? What is the difference between periodic and perpetual inventory systems? Which items and costs should be included in inventory?
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