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Tate Inc. has beginning work in process $26,000, direct materials used $240,000, direct labor $220,000, total manufacturing overhead $180,000, and ending work in process $32,000.
1. Using the above data, what are (a) the total cost of work in process and (b) the cost of goods manufactured?
2. In what order should manufacturing inventories be listed in a balance sheet?
3. How does the output of manufacturing operations differ from that of service operations?
4. Discuss whether the product costing techniques discussed in this chapter apply equally well to manufac- turers and service companies.
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In your opinion, why is accounting for a manufacturing business more complicated than accounting for a merchandising business and provide three examples each of materials, labor costs, and factory overhead.
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Determine the total amount of a delivery service product costs and (b) period costs.
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