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Following are certain operating data for Durango Manufacturing Company for January 2016: Total sales were $1.800.000. On which the company earned a 40% gross profit.

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Following are certain operating data for Durango Manufacturing Company for January 2016: Total sales were $1.800.000. On which the company earned a 40% gross profit. Durango uses a predetermined manufacturing overhead rate of 20% of direct labor costs. Manufacturing overhead applied was $360.000. Exclusive of indirect material used, total manufacture overhead incurred was $243.000: it was over-applied by $22.500. Required Compute the following items. (Set up T accounts tor Materials inventory. Work in Process inventory, finished Goods inventory, and Manufacturing Overhead, fill in the known amounts; and then use the normal relationships among the various accounts to compute the unknown amounts.) Cost of goods sold. Cost of goods manufactured. Direct labor incurred. Direct material used. Indirect material used. Total materials purchased

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