Keeton Company Has the Following Data Calculate the Cost of Goods Sold

question 220

Essay

Keeton Company has the following data:?? $$\begin{array} { l r } \text { Cost of materials used } & \$ 60,000 \\\text { Direct labor costs } & 58,000 \\\text { Factory overhead } & 33,000 \\\text { Work in process inventory, beginning } & 29,000 \\\text { Work in process inventory, ending } & 18,000 \\\text { Finished goods inventory, beginning } & 32,000 \\\text { Finished goods inventory, ending } & 18,000\end{array}$$ Calculate the cost of goods sold.

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Definitions:

Disposable Income

The sum of funds households can spend and save after deducting income taxes.

APS

Average Propensity to Save, which measures the proportion of income that is saved rather than spent.

Capacity Utilization Rate

The percentage of a firm's total potential production capacity that is actually being utilized in the production of goods or services.

Manufacturing Firms

Companies engaged in the industrial process of converting raw materials into finished products through human labor and machinery.