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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.
The production supervisor estimates that the ending work in process is 60 percent complete. Compute the cost of solvent transferred to finished goods and the amount in work-in-process ending inventory as of November 30.
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The masks sell for $17.00. Budgeted fixed manufacturing overhead for the most recent year was $396,000. Actual production was equal to planned production. Required: Under each of the following conditions, state (a) whether operating income is ..
Jan. 11 Reinstated the account of Lloyd Place, which had been written off on September 27 of the previous year, and received $5,800 cash in full settlement.
Explain the circumstances under which the retail inventory method would be applied and the advantages of using the retail inventory method.
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