Question
Fairbain Corporation was newly formed early in 20X1. The following information relates to the full year: Raw materials purchased (net) $3,000,000 Direct labor costs 2,000,000
Fairbain Corporation was newly formed early in 20X1. The following information relates to the full year:
Raw materials purchased (net) $3,000,000 Direct labor costs 2,000,000 Factory overhead 1,500,000 Selling, general & administrative 700,000
80% of the available raw material was transferred into production. 75% of the work in process was completed. 90% of the finished goods were sold. 10% of factory overhead related to depreciation. 20% of SG&A related to depreciation.
(a) How much is in ending inventory for (1) raw materials, (2) work in process, and (3) finished goods?
(b) How much is in (1) cost of goods sold and (2) SG&A expense for the period?
(c) How much of the total depreciation for the period is charged against income during the period?
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