Sluggo, a slot machine manufacturer, paid and incurred the following expenses during the year: Raw materials Materials and supplies Freight-in on raw materials $50,000 10,000 3,500 Freight on shipments of finished slot machines 5,000 Direct labor Indirect labor 35,000 15,000 20,000 Allocable overhead expenses for production The beginning inventory of finished goods was $35,000, and the ending inventory was $20,000. What is the amount of Sluggo's cost of goods sold for the year? a. $133,500 b. $148,500 c. $150,000 d. $168,500

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 6PA: During the year, a company purchased raw materials of $77,321, and incurred direct labor costs of...
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Sluggo, a slot machine manufacturer, paid and incurred the following expenses during
the year:
Raw materials
Materials and supplies
Freight-in on raw materials
$50,000
10,000
3,500
Freight on shipments of finished slot machines 5,000
Direct labor
Indirect labor
35,000
15,000
20,000
Allocable overhead expenses for production
The beginning inventory of finished goods was $35,000, and the ending inventory was
$20,000.
What is the amount of Sluggo's cost of goods sold for the year?
a. $133,500
b. $148,500
c. $150,000
d. $168,500
Transcribed Image Text:Sluggo, a slot machine manufacturer, paid and incurred the following expenses during the year: Raw materials Materials and supplies Freight-in on raw materials $50,000 10,000 3,500 Freight on shipments of finished slot machines 5,000 Direct labor Indirect labor 35,000 15,000 20,000 Allocable overhead expenses for production The beginning inventory of finished goods was $35,000, and the ending inventory was $20,000. What is the amount of Sluggo's cost of goods sold for the year? a. $133,500 b. $148,500 c. $150,000 d. $168,500
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