Question

Luebke Inc. has provided the following data for the month of November. The balance in the...

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:

Homework Answers

Answer #1

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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