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The Records of Jimmy Company Show 2016 Purchases of $90,000

question 63

Essay

The records of Jimmy Company show 2016 purchases of $90,000. An actual count revealed a 2016 ending inventory of $8,000. The 2016 beginning inventory was $5,000. What was cost of goods sold for 2016?


Definitions:

Work in Process

Inventory that is in the production process but is not yet complete.

Overapplied Overhead

A situation where the overhead costs allocated for products or services exceed the actual overhead costs incurred.

Manufacturing Overhead

Refers to all manufacturing costs excluding the direct costs of labor and materials, such as rent, utilities, and equipment depreciation.

Direct Labor-Hours

The total time worked by employees who are directly involved in the manufacturing process of a product.

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