Factory Overhead Rate and Relationship of Cost Elements. A schedule of cost of goods manufactured
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Factory Overhead Rate and Relationship of Cost Elements. A schedule of cost of goods manufactured shows
Materials used
$150,000
Direct labor
400,000
Overhead costs
300,000
Work in process, ending inventory
120,000
Required: (1) The rate of factory overhead to direct labor cost. (2) The cost of direct materials included in the work in process ending inventory, assuming that the direct labor cost included in the inventory of work in process is $40,000.
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