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In: Accounting

Manning Company had the following inventory balances at the beginning and end of the year: January...

Manning Company had the following inventory balances at the beginning and end of the year:

January 1

December 31

Raw material

$60,000

$50,000

Work in process

140,000

180,000

Finished goods

280,000

255,000



During the year, the company purchased $100,000 of raw material and incurred $340,000 of direct labor costs.

Other data: manufacturing overhead incurred, $440,000; manufacturing overhead applied, $450,000

Sales, $1,560,000;

Selling and administrative expenses, $90,000;

Income tax rate, 30%.

Required:
A. Calculate cost of goods manufactured.
B. Calculate cost of goods sold.
C. Determine Manning's net income. (prepare an income statement)

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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