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Question
The Goods in Process Inventory Account for XYZ Inc. follows:
| Goods in Process Inventory | ||
| Beginning balance | $4,750 | |
| Direct materials | 17,925 | ? COG Manufactured |
| Direct labor | 24,750 | |
| Applied overhead | ? | |
| Ending balance | $10,400 | |
If the overhead is applied at the rate of 80% of direct labor cost, what is the amount of Cost of Goods Manufactured?
A. $19,800
B. $56,825
C. $61,775
D. $51,365
E. $37,025
Answer
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