Time remaining: 0:40:15 9. Crombie Inc. uses a job-order costing system in which

Question

Time remaining: 0:40:15 9. Crombie Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. The company has provided the following data for June: Direct materials Direct labor cost Manufacturing overhead cost incurred Manufacturing overhead cost applied $39,750 56,250 $75,250 78,430 entories: Work in process Finished goods Beginning Ending $22,800 $56,460 $26,900 $31,260 The unadjusted cost of goods sold (in other words, cost of goods sold before adjusting for any underapplied or overapplied overhead) for June is closest to: O $174,430 O $192,350 O $165,970 O $195,530

Explanation / Answer

unadjusted cost of goods sold = direct material + direct labor cost + manufacturing overhead cost applied

= 39750 + 56250 + 78430

= 174430

the unadjusted cost will include the overcost applied and not the actual incurred because the actual incurred will be taken into account during adjusting the overapplied or underapplied overhead cost.

option A, 174430 is the answer

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.