Stangl Inc. has provided the following data for the month of September. There we

Question

Stangl Inc. has provided the following data for the month of September. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

Manufacturing overhead for the month was underapplied by $3,900.

The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

Required:

Determine the cost of work in process, finished goods, and cost of goods sold AFTER allocation of the underapplied or overapplied overhead for the period.

Work In Process Finished Goods Cost of Goods Sold Total Direct materials $ 1,570 $ 7,500 $ 14,520 $ 23,590 Direct labor 5,370 17,760 34,500 57,630 Manufacturing overhead applied 4,004 9,240 17,556 30,800 Total $ 10,944 $ 34,500 $ 66,576 $ 112,020

Explanation / Answer

Work in Process Finished Goods Cost of Goods Sold Total Total 10944 34500 66576 112020 Allocation of underapplied overhead 507 1170 2223 3900 (3900 x 4004/30800) (3900 x 9240/30800) (3900 x 17556/30800) Total after allocation of underapplied overheads $ 11451 35670 68799 115920

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