Reference: 16_01
Refer to the Following Table of Cost Information

question 54

True/False

Reference: 16_01
Refer to the following table of cost information:
$\begin{array}{llr}&\text { Goods in } & \text { Goods in } & \\&\text { Process- } & \text { Process- } & \text { Finished } \\&\underline{\text { Pickling }} & \underline{\text { Canning }} &\underline{ \text { Goods }}\\ \text { Beginning inventory } &\$25,000&\$7,500&\$10,000\\ \text {Costs incurred: } &\\ \text { Direct materials } &16,000&3,000\\ \text { Direct labor } &4,000&2,100\\ \text {Overhead applied } &6,000&4,200\\ \text { Coststransferred out } &(29,000)&(35,000)\\ \text { Coststransferred in.} &&29,000&35,000\\ \text { Cost of goods sold } &\underline{\quad\quad}&\underline{\quad\quad}&\underline{(39,000)}\\ \text {Ending inventory } & \underline{\$22,000}& \underline{\$10,800}& \underline{\$6,000}\\\end{array}$

-If the allocated overhead equaled the actual overhead,then total manufacturing costs incurred in both departments during the reporting period were $35,300.

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Definitions:

Expensive Products

Products that are priced high relative to their perceived value or compared to similar products in the market.

Credit Periods

The duration during which a buyer can pay the due amount to the seller without incurring any interest.

Product Cost

The total cost incurred to produce a product or deliver a service, including materials, labor, and overhead expenses.

Credit Periods

Refers to the specific lengths of time granted by suppliers to customers in which they can pay for goods or services without incurring any interest charges.