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  • Flow of Goods

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    The company purchased raw materials for $80,000 and issued $50,000 to production. Production incurred $100,000 in direct labor costs and paid $75,000, and incurred $120,000 in manufacturing overhead costs. $200,000 of goods were completed and transferred to finished goods, of which $160,000 of goods were sold for $300,000. The document provides information about the company's initial operations and costs and asks questions to calculate markup percentage and gross margin percentage.

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    The company purchased raw materials for $80,000 and issued $50,000 to production. Production incurred $100,000 in direct labor costs and paid $75,000, and incurred $120,000 in manufacturing overhead costs. $200,000 of goods were completed and transferred to finished goods, of which $160,000 of goods were sold for $300,000. The document provides information about the company's initial operations and costs and asks questions to calculate markup percentage and gross margin percentage.

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    2 views1 page

    Flow of Goods

    Uploaded by

    vclar
    The company purchased raw materials for $80,000 and issued $50,000 to production. Production incurred $100,000 in direct labor costs and paid $75,000, and incurred $120,000 in manufacturing overhead costs. $200,000 of goods were completed and transferred to finished goods, of which $160,000 of goods were sold for $300,000. The document provides information about the company's initial operations and costs and asks questions to calculate markup percentage and gross margin percentage.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Company is just starting operations.

    Flow of Goods Through T-account:


    Purchased $80,000 of raw materials.
    Issued $50,000 of raw materials to production.
    Incurred $100,000 of direct labour.
    Paid $75,000 of direct labour.
    Incurred $120,000 of manufacturing overhead.
    Goods costing $200,000 were completed and transferred to finished goods.
    Goods costing $160,000 were sold for $300,000.
    What is the mark up %?
    What is the gross margin (profit) %?
    A company marks up its shirts by 120%. If the cost of the shirt is $60,
    calculate the Selling price and gross profit %.

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