Question

In: Accounting

Luebke Incorporated has provided the following data for the month of November.

 

 Luebke Incorporated 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 $70,000 and at the end of the month was $31,800. The cost of goods manufactured for the month was $221,000. The actual manufacturing overhead cost incurred was $60,400 and the manufacturing overhead cost applied to Work in Process was $65.200. 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:

 

 $254.400

 $182.800

 $259.200

 $221,000

 

Solutions

Expert Solution

Particulars Amount
Cost of goods manufactured $221,000
+ Beginning finished goods inventory 70,000
- Ending finished goods inventory -31,800
Cost of goods sold $259,200
- Overapplied manufacturing overhead ($65,200 - $60,400) -4,800
Adjusted cost of goods sold for November $254,400

$254,400 is the correct answer.


Adjusted cost of goods sold for November = $254,400

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