Asked by Grace Thomas on May 02, 2024
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Given the following data for Glennon Company compute (A) total manufacturing costs and (B) costs of goods manufactured: Direct materials used $270,000 Beginning work in process $40,000 Direct labor 200,000 Ending work in process 20,000 Manufacturing overhead 250,000 Beginning finished goods 50,000 Operating expenses 350,000 Ending finished goods 30,000\begin{array} { l r l r } \text { Direct materials used } & \$ 270,000 & \text { Beginning work in process } & \$ 40,000 \\\text { Direct labor } & 200,000 & \text { Ending work in process } & 20,000 \\\text { Manufacturing overhead } & 250,000 & \text { Beginning finished goods } & 50,000 \\\text { Operating expenses } & 350,000 & \text { Ending finished goods } & 30,000\end{array} Direct materials used Direct labor Manufacturing overhead Operating expenses $270,000200,000250,000350,000 Beginning work in process Ending work in process Beginning finished goods Ending finished goods $40,00020,00050,00030,000
A‾B‾\begin{array}{llr}& &&\underline{\text {A}}&&&&& \underline{\text {B}}\\\end{array}AB
A) $700,000$740,000\begin{array}{lll} & \$ 700,000 & \$ 740,000 \\\end{array}$700,000$740,000
B) $720,000$700,000\begin{array}{lll} & \$720,000 & \$ 700,000 \\\end{array}$720,000$700,000
C) $720,000$740,000\begin{array}{lll}& \$ 720,000 & \$ 740,000 \\\end{array}$720,000$740,000
D) $740,000$760,000\begin{array}{lll} & \$ 740,000 & \$ 760,000\end{array}$740,000$760,000
Direct Materials
Raw materials that are directly incorporated into a finished product and can be directly attributed to the product.
Manufacturing Overhead
All indirect costs associated with the production process of a company, including utilities, depreciation, and salaries of non-direct labor.
Work In Process
Inventory that is currently being manufactured but is not yet complete.
- Determine and explore the financial aspects of manufacturing, focusing on direct materials, direct labor, and overhead expenditures.
- Discern among various manufacturing cost types and assimilate their effects on the cost of goods produced and sold.
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Learning Objectives
- Determine and explore the financial aspects of manufacturing, focusing on direct materials, direct labor, and overhead expenditures.
- Discern among various manufacturing cost types and assimilate their effects on the cost of goods produced and sold.
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