Libby Company Uses the Periodic Inventory System and Applied FIFO

question 114

Essay

Libby Company uses the periodic inventory system and applied FIFO inventory costing. At the end o the annual accounting period, December 31, 20D, the accounting records for the best selling item in inventory showed:
Determine the following (show computations and round to the nearest dollar):

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Definitions:

Direct Labour-Hour

A measure of the amount of time a worker spends on a specific task or production activity.

Raw Materials Purchased

The total cost of primary materials acquired for use in the manufacturing process within a specific accounting period.

Direct Materials

The raw materials that are directly used in the production of a product, easily traceable to that product.

Cost of Goods Manufactured

The total production cost incurred by a company to manufacture products in a specific period, including costs of materials, labor, and overhead.