a. During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of $126,000. Overhead is applied at the rate of 70% of the direct labor cost. These are the inventory balances:

	Beginning		Ending
Raw materials inventory	$17,435		$16,427
Work in process inventory	241,439		234,423
Finished goods inventory	312,843		342,382

Compute the cost of materials used in production, the cost of goods manufactured, and the cost of goods sold.

Cost of materials used in production	$
Cost of goods manufactured	$
Cost of goods sold	$

b. Freeman Furnishings has summarized its data as shown:

Depreciation of factory building	$106,000
Factory real estate taxes	$15,000
Factory utility expenses	$85,000
Indirect materials	$32,000
Indirect labor	$25,000
Direct labor cost	$86,000
Direct labor hours incurred	23,500
Estimated direct labor hours	24,000
Raw material purchased	$360,000
Raw material, beginning inventory	$30,000
Raw material, ending inventory	$27,000
Work in process, beginning inventory	$49,000
Work in process, ending inventory	$66,000
Estimated overhead	$276,000

Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours.

c. Job cost sheets show the following information:

Job	January		February		March		Completed		Sold
AA2	$2,300		$1,200				February		Not sold
AA4	4,838						January		February
AA5			3,250				February		March
AA3			3,409		$2,321		April		Not sold
Total	$7,138		$7,859		$2,321

What are the balances in the work in process inventory, finished goods inventory, and cost of goods sold for January, February, and March?

	Work in Process			Finished Goods			COGS
January		$			$
February								$
March