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June 1, 2007 June 30, 2007
June 1, 2007 June 30, 2007
1. JANO Pharmaceuticals Share Company manufactures a single product. The following data
present transactions and additional information for November 2007, the company’s first
month of operation:
Direct materials purchased on account $58,000
Direct materials issued to production 40,000
Direct labor costs accrued 26,000
Factory insurance expired 3,000
Factory utility paid 2,500
Factory depreciation 6,000
Finished goods, November 30 3,100 units
Indirect materials purchased on account 5,000
Indirect materials issued to production 2,000
Indirect labor costs paid 8,000
Marketing depreciation 1,800
2. Cost of goods sold for Fewes Share Company for June 2007 was $350,000. Work in process
inventory on June 30, 2007 was 95% of work in process inventory on June 1, 2007.
Manufacturing overhead costs are determined to be 80% of direct labor costs. During June
2007, $110,000 of direct materials were purchased. Other information for June 2007 follows: