During Raw materials purchased Direct labor cost Indirect factory labor Taxes and depreciation on factory building Taxes and depreciation on sales room and office the year, the following costs and expenses were incurred: 150,000 60,000 30,000 10,000 7,500 20,000 Sales salaries Office salaries 12,000 Utilities (60% applicable to factory, 20% to sales room, and 20% to office) 25,000 Holdaway's cost of goods sold for the year is b. 260,500 a. 257,000 c. 261,000 d. 269,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Holdaway's cost of goods sold for the year is
a. 257,000 b. 260,500 c. 261,000 d. 269,500

6. Holdaway Co., a manufacturer, had inventories at the
beginning and end of its current year as follows:
Beginning
11,000
End
Raw materials
15,000
Work in process
Finished goods
20,000
24,000
12,500
9,000
Transcribed Image Text:6. Holdaway Co., a manufacturer, had inventories at the beginning and end of its current year as follows: Beginning 11,000 End Raw materials 15,000 Work in process Finished goods 20,000 24,000 12,500 9,000
Inventory Estimation
453
During the
Raw materials purchased
year, the following costs and expenses were incurred:
150,000
Direct labor cost
60,000
Indirect factory labor
Taxes and depreciation on factory building
30,000
10,000
Taxes and depreciation on sales room and office
7,500
Sales salaries
20,000
Office salaries
12,000
Utilities (60% applicable to factory, 20% to sales room, and 20%
to office)
25,000
Holdaway's cost of goods sold for the year is
b. 260,500
c. 261,000 d. 269,500
a. 257,000
(Adapted)
Transcribed Image Text:Inventory Estimation 453 During the Raw materials purchased year, the following costs and expenses were incurred: 150,000 Direct labor cost 60,000 Indirect factory labor Taxes and depreciation on factory building 30,000 10,000 Taxes and depreciation on sales room and office 7,500 Sales salaries 20,000 Office salaries 12,000 Utilities (60% applicable to factory, 20% to sales room, and 20% to office) 25,000 Holdaway's cost of goods sold for the year is b. 260,500 c. 261,000 d. 269,500 a. 257,000 (Adapted)
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