In: Accounting
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
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