Question: Osprey Ltd manufactures designer purses During the year it recorded

Osprey Ltd. manufactures designer purses. During the year, it recorded direct materials used of $684,000. Total manufacturing costs of $1,482,000 were incurred during the year. Osprey uses one indirect cost pool for all overhead costs and allocates overhead at a rate of 60% of direct labour dollars.
Prepare a Schedule of Cost of Goods Manufactured and Sold for the year. You will need to solve for the following unknowns:
a. Direct materials purchased.
b. Direct labour costs.
c. Manufacturing overhead allocated.
d. Cost of goods manufactured.
e. Cost of goods sold.

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  • CreatedJuly 31, 2015
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