HA2011 Tutorial Questions On Management Accounting - Tutoring 1

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Week 3 Question (10 marks)

The following information relates to Wells Fargo for July 2008:

  • Actual direct labour costs $80,000
  • Actual direct labour rate per hour $8
  • Factory overhead rate per direct labour hour $12
  • Factory overhead incurred $160,000

Assuming underapplied or overapplied overhead is transferred to cost of goods sold at the end of the period, calculate the cost of goods sold account.

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