Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $55,000 and at the end of the month was $30,300. The cost of goods manufactured for the month was $213,500. The actual manufacturing overhead cost incurred was $55,900 and the manufacturing overhead cost applied to Work in Process was $59,200. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is:
The actual manufacturing overhead cost incurred was $55,900 and the manufacturing overhead cost applied to Work in Process was $59,200.
Over applied manufacturing overhead cost = manufacturing overhead cost applied to Work in Process - Actual manufacturing overhead cost incurred
= 59,200 - 55,900
= $3,300
Schedule of cost of goods sold
Beginning finished goods inventory |
55,000 |
Add: Cost of goods manufactured |
213,500 |
Cost of goods available for sale |
268,500 |
Less: Ending finished goods inventory |
- 30,300 |
Unadjusted cost of goods sold |
238,200 |
Less: over applied overhead |
- 3,300 |
Adjusted cost of goods sold |
$234,900 |
The adjusted cost of goods sold that would appear on the income statement for November is $234,900
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