Allen Company Used $71,000 of Direct Materials and Incurred $37,000

question 21

Essay

Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during 2011. Indirect labor amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100; maintenance of $4,500; supplies of $1,800; depreciation of $7,900; and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began the year with a $5,500 balance and ended the year with a $7,500 balance.
Prepare a statement of cost of goods manufactured.

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Definitions:

United States

A federal republic in North America, composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Priming

A technique used in psychology and media studies where exposure to certain stimuli influences responses to subsequent related or unrelated stimuli.

Specific Criteria

Explicit standards or requirements set for making decisions or judgments in a particular context.

Evaluating

The process of systematically assessing something to determine its value, impact, or significance.