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Problem - The accounting records of Roland Manufacturing Company include the following information:
Dec. 31
Jan. 1
Work in process inventory
$70,000
$50,000
Finished goods inventory
120,000
160,000
Direct materials used
350,000
Direct labor
220,000
Selling expenses
125,000
Manufacturing overhead is applied at a rate of 150% of direct labor cost.
Required - Answer the following questions:
1. What is the total of the debits to Work in Process Inventory during the year?
2. What is the amount transferred to Finished Goods Inventory during the year?
3. What is the cost of goods sold?
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