August 1 Finished Goods Inventory Work in Process Inventory Raw Materials Inventory Total debits to Factory overhead control Total credits to Factory overhead control Cost of goods sold 770 80,000 70,000 40,000 750,000 800,000 1,200,000 August 31 110,000 30,000 20,000 984,000 1,040,000 2,000,000

August 1 Finished Goods Inventory Work in Process Inventory Raw Materials Inventory Total debits to Factory overhead control Total credits to Factory overhead control Cost of goods sold 770 80,000 70,000 40,000 750,000 800,000 1,200,000 August 31 110,000 30,000 20,000 984,000 1,040,000 2,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following balances were selected from the general ledger accounts of Survivor Manufacturing Company:

August 1
Finished Goods Inventory
Work in Process Inventory
Raw Materials Inventory
Total debits to Factory overhead control
Total credits to Factory overhead control
Cost of goods sold
80,000
70,000
40,000
750,000
800,000
1,200,000
August 31
110,000
30,000
20,000
984,000
1,040,000
2,000,000
0
Factory overhead is applied at 75% of direct labor cost. How much is the total cost of
purchases for the month of August?

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