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At the beginning of October 2021, Lola Corporation had the following account balances: Raw Materials Inventory $30,000 Work in Process Inventory 45,000 Finished Goods Inventory
At the beginning of October 2021, Lola Corporation had the following account
balances:
Raw Materials Inventory $30,000
Work in Process Inventory 45,000
Finished Goods Inventory 20,000
During October, the following transactions took place.
- Raw materials were purchased on account, $150,000.
- Factory payroll consisted of $100,000 for direct labor employees and $20,000 for indirect labor employees.
- Office salaries totaled $50,000 for the month.
- Utilities of $40,000 were accrued; 70 percent of the utilities cost is for the factory area.
- Depreciation of $30,000 was recorded on plant assets; 70 percent of the depreciation is related to factory machinery and equipment.
- Rent of $30,000 was paid on the building. The factory occupies 50 percent of the building.
- Selling expenses in October were $30,000.
- At the end of October, the Work in Process Inventory balance was $20,000.
- At the end of October, the balance in Finished Goods Inventory was $30,000.
- At the end of October, the balance in Raw Materials Inventory was $50,000.
- At the end of October, the balance in Accounts Receivables was $300,000.
- At the end of October, the balance of Cash was $400,000.
- At the end of October, the balance in Retained Earnings was $900,000.
- Determine the total amount of cost of goods manufactured for October 2021.
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