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Cost Flow and the Income Statement R-Tunes inc, is in the business of developing, promoting, and selling musical talent online and with compact discs (CDs). The company signed a new group, called Cyclon Panic, on January 1, 20Y8. For the first six months of 20 rs, the company spent $2,637,000 on a media campaign for Cyclane Panic and $791,000 in legal costs. The CD production began on April 1; 20Y8. R-Tunes uses a job order cost system to accumulate costs associated with a CD title. The unit direct materials cost for the cD is: The production process is straightfonward. First, the blank. CDs are brought to a production area where the digital soundtrack is copied onto the CD. The copying machine can copy 1,380 cDs per hour. After the CDs are copled, they are brought to an assembly area where an employee pocks the CD with a case and song lyric insert. The direct labor cost is s0.30 per. CD. The CDs are sold to record stores. Each record store is given promotional materials, such as posters and aisle displays. Promotional materials cost $45 per record stere. In addition, shipping costs average $0.30 per CD. Total completed production was 596,000 cDs during the year Other information is as follows: Factory overhead cost is applied to jobs at the rate of $690 per copy machine hour, There were an additional 146,500 copied CDs, packages, and inserts waiting to be assembled on December 31,20Y8. cent, if rounding is required. 2. Determine the balances in the work-in-process and finished goods inventories for the Cycione Panic CD on December 31 , 20 V. When performing intermec calculations, round unit costs to the nearest cent

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