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    Lone Oak's manufacturing overhead, cost of good manufactured

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    Raw material purchases $ 176,000
    Direct labor 255,000
    Indirect labor 109,000
    Selling and administrative salaries 133,000
    Building depreciation* 80,000
    Other selling and administrative expenses 195,000
    Other factory costs 342,000
    Sales revenue ($130 per unit) 1,495,000

    *Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions.

    Inventory data:

    January 1 December 31
    Raw material $
    Work in process
    Finished goods*

    *The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.

    Requirement 1:
    Calculate Lone Oak's manufacturing overhead for the year.

    Manufacturing overhead $

    Requirement 2:
    Calculate Lone Oak's cost of goods manufactured.

    Cost of goods manufactured $

    Requirement 3:
    Compute the company's cost of goods sold. (Omit the "$" sign in your response.)

    Cost of goods sold $.

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    The solution discusses Lone Oak's manufacturing overhead and cost of goods manufactured.