McAllister, Inc., employs a normal costing system. The following information pertains to the year just ended. • Total manufacturing costs were $1,380,000. Cost of goods manufactured was $1,349,000. Applied manufacturing overhead was 20 percent of total manufacturing costs. Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost. Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31. 2. Calculate the total cost of direct material used during the year. Direct-material cost

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.]
McAllister, Inc., employs a normal costing system. The following information pertains to the year just ended.
Total manufacturing costs were $1,380,000.
Cost of goods manufactured was $1,349,000.
Applied manufacturing overhead was 20 percent of total manufacturing costs.
Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost.
Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31.
2. Calculate the total cost of direct material used during the year.
Direct-material cost
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] McAllister, Inc., employs a normal costing system. The following information pertains to the year just ended. Total manufacturing costs were $1,380,000. Cost of goods manufactured was $1,349,000. Applied manufacturing overhead was 20 percent of total manufacturing costs. Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost. Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31. 2. Calculate the total cost of direct material used during the year. Direct-material cost
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