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Steger Designs makes winter boots and moccasins at its factory in northern Minnesota. Assume the following represents data related to Steger operations last year:
Raw materials used $ 400,000
Total manufacturing costs charged to production during the year (includes raw materials, direct labor, and manufacturing overhead applied at a rate of 200 percent of direct labor costs)
850,000
Cost of goods available for sale 958,000
Selling and general expenses 280,000
Inventories
Beginning Ending
Raw materials $ 110,000 $ 105,000
Work-in-process 75,000 92,000
Finished goods 125,000 135,000
Determine each of the following:
(a) Cost of raw materials purchased
(b) Direct labor costs charged to production
(c) Cost of goods manufactured
(d) Cost of goods sold
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Steger Designs makes winter boots and moccasins at its factory in northern Minnesota. Assume the fol...
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