2-15
Direct labor cost
ess and transferred to Finished Goods. As goods
(34 hours × $15 per hour) ... $510
are sold, their cost is removed from Finished
Manufacturing overhead cost
Goods and transferred to Cost of Goods Sold.
(6 hours × $15 per hour) ... 90
Cost of Goods Sold is an expense on the income
statement.
Total wages earned ... $600
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