Information for Eastman Industries Is Presented Below

question 197

Essay

Information for Eastman Industries is presented below. Compute the cost of goods manufactured.
$$\begin{array} { | l | r | } \hline \text { Beginning work in process inventory } & 21,200 \\\hline \text { Ending work in process inventory } & 20,000 \\\hline \text { Raw materials used in production } & \$ 46,800 \\\hline \text { Direct labor } & 81,000 \\\hline \text { Total factory overhead } & 106,000 \\\hline\end{array}$$

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Definitions:

Owner's Equity

The total assets minus total liabilities of an individual owner in a business, representing the owner's residual interest in the company.

Liabilities

The financial obligations or debts of a business entity, which are settled over time through the transfer of economic benefits including money, goods, or services.

Assets

Resources owned or controlled by a business, individual, or entity that are expected to provide future economic benefits.

Accounting Equation

A fundamental financial principle representing the balance between a company's assets, liabilities, and equity.