2. Gitano Products
Schedule of Cost of Goods Manufactured
Direct materials:
Raw materials inventory, beginning ... $ 20,000
Add purchases of raw materials... 510,000
Total raw materials available... 530,000
Deduct raw materials inventory, ending ... 80,000
Raw materials used in production... $ 450,000
Direct labor ... 90,000
Manufacturing overhead applied to work in
process ... 720,000
Total manufacturing costs ... 1,260,000
Add: Work in process, beginning... 150,000
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