Edison Company manufactures wool blankets and accounts for product costs using p
Edison Company manufactures wool blankets and accounts for product costs using process costing. The following information is available regarding its May inventories. BeginningInventory EndingInventory Raw materials inventory $ 63000 $ 48000 Goods in process inventory 405000 525000 Finished goods inventory 605000 382001 The following additional information describes the companys production activities for May. Raw materials purchases (on credit) $ 290000 Factory payroll cost (paid in cash) 1808000 Other overhead cost (Other Accounts credited) 96000 Materials used Direct $ 180000 Indirect 74000 Labor used Direct $ 1058000 Indirect 750000 Overhead rate as a percent of direct labor 115 % Sales (on credit) $ 3000000 rev: 1
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