Question

Item 5

Item 5

A company has provided the following data for the month of May:

Inventories:

	Beginning		Ending
Work in process	$	25,000	$	20,000
Finished goods	$	54,000	$	58,000

Additional information:

Direct materials	$	65,000
Direct labor cost	$	95,000
Manufacturing overhead cost incurred	$	71,000
Manufacturing overhead cost applied to Work in Process	$	69,000

Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.

The adjusted cost of goods sold (that is, cost of goods sold adjusted for underapplied or overapplied overhead) for May is:

Answer 1