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    Bizarre Company inventories finished goods at selling price. They had $1.4 million in sales, $1.34 million in total costs including $500,000 for raw materials, $600,000 for labor, and $240,000 for overhead. Work in process inventory increased by $140,000 from January to December. The cost of goods manufactured was $1.2 million. Finished goods inventory increased by $600,000 from January to December when valued at selling price. Gross income was $800,000.

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    114

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    Bizarre Company inventories finished goods at selling price. They had $1.4 million in sales, $1.34 million in total costs including $500,000 for raw materials, $600,000 for labor, and $240,000 for overhead. Work in process inventory increased by $140,000 from January to December. The cost of goods manufactured was $1.2 million. Finished goods inventory increased by $600,000 from January to December when valued at selling price. Gross income was $800,000.

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    ae 121 intacc review

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    114.docx

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    Bizarre Company inventories finished goods at selling price. They had $1.4 million in sales, $1.34 million in total costs including $500,000 for raw materials, $600,000 for labor, and $240,000 for overhead. Work in process inventory increased by $140,000 from January to December. The cost of goods manufactured was $1.2 million. Finished goods inventory increased by $600,000 from January to December when valued at selling price. Gross income was $800,000.

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    8 views2 pages

    114

    Uploaded by

    mercyvienho
    Bizarre Company inventories finished goods at selling price. They had $1.4 million in sales, $1.34 million in total costs including $500,000 for raw materials, $600,000 for labor, and $240,000 for overhead. Work in process inventory increased by $140,000 from January to December. The cost of goods manufactured was $1.2 million. Finished goods inventory increased by $600,000 from January to December when valued at selling price. Gross income was $800,000.

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    of 2

    Bizarre Company had always inventoried finished goods at selling price and prepared the

    following statement on this basis:


    Sales 1,400,0
    00
    Raw materials used at 500,000
    cost
    Labor 600,000
    Overhead 240,000
    Total 1,340,000
    Work in process at cost:
    January 1 612,00
    0
    December 31 752,00 140,000
    0
    Cost of goods 1,200,000
    manufactured
    Finished goods at selling
    price:
    January 1 240,00
    0
    December 31 840,00 600,000 600,0
    0 00
    Gross income 800,0
    00

    What is the cost of goods sold?

    Cost Retail
    Finished goods -
    January 1 P144,000 P240,000
    (60% 240,000)
    Cost of goods 1,200,000 2,000,000
    manufactured
    Goods available for P1,344,000 P2,240,000
    sale
    Finished goods -
    December 31 (504,000) (840,000)
    (60% x 840,000)
    Cost of goods sold P840,000 P1,400,000

    Cost ratio = Goods manufactured at cost


    Goods manufactured at retail
    = 1,200,000/2,000,000

    This study source was downloaded by 100000829762050 from CourseHero.com on 02-15-2022 06:23:42 GMT -06:00

    https://www.coursehero.com/file/81194323/114docx/
    = 60%

    This study source was downloaded by 100000829762050 from CourseHero.com on 02-15-2022 06:23:42 GMT -06:00

    https://www.coursehero.com/file/81194323/114docx/
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