Richards Company manufactures a single product. All raw materials used were direct materials. Current information for the company follows: Beginning raw materials inventory Ending raw materials inventory Raw material purchases $ 28,000 30,000 108,000 Beginning work in process inventory 58,000 Ending work in process inventory 43,000 Direct labor 148,000 Total factory overhead 78,000 Beginning finished goods inventory 73,000 Ending finished goods inventory 63,000 The company's cost of direct materials used, cost of goods manufactured and cost of goods sold are: Option A Option B Cost of Cost of Goods Materials Used Manufactured $108,000 $110,000 $347,000 $347,000 Cost of Goods Sold $337,000 $357,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 6PA: During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of...
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Richards Company manufactures a single product. All raw
materials used were direct materials. Current information for
the company follows:
Beginning raw materials inventory
Ending raw materials inventory
Raw material purchases
$ 28,000
30,000
108,000
Beginning work in process inventory 58,000
Ending work in process inventory
43,000
Direct labor
148,000
Total factory overhead
78,000
Beginning finished goods inventory
73,000
Ending finished goods inventory 63,000
The company's cost of direct materials used, cost of goods
manufactured and cost of goods sold are:
Option
A
Option
B
Cost of
Cost of Goods
Materials Used Manufactured
$108,000
$110,000
$347,000
$347,000
Cost of
Goods Sold
$337,000
$357,000
Transcribed Image Text:Richards Company manufactures a single product. All raw materials used were direct materials. Current information for the company follows: Beginning raw materials inventory Ending raw materials inventory Raw material purchases $ 28,000 30,000 108,000 Beginning work in process inventory 58,000 Ending work in process inventory 43,000 Direct labor 148,000 Total factory overhead 78,000 Beginning finished goods inventory 73,000 Ending finished goods inventory 63,000 The company's cost of direct materials used, cost of goods manufactured and cost of goods sold are: Option A Option B Cost of Cost of Goods Materials Used Manufactured $108,000 $110,000 $347,000 $347,000 Cost of Goods Sold $337,000 $357,000
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