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Tucson Co. uses a normal costing system. Factory (or Manufacturing) overhead is applied at a budgeted...

Tucson Co. uses a normal costing system. Factory (or Manufacturing) overhead is applied at a budgeted rate based on direct labor cost. At the end of the period, there are two unfinished jobs.

Additional information is available as follows:

                  Direct materials used                             $ 50,000

                  Direct labor costs                                   $100,000

                  Beginning Work-in-process inventory $100,000

                  Cost of goods manufactured                  $150,000

                  Beginning Finished goods inventory     $140,000  

                  Ending Finished goods inventory          $110,000

                  Actual factory overhead incurred          $ 90,000

                  Factory overhead is over-applied by $60,000.

Determine the following amounts:

  1. Applied overhead
  2. Cost of goods sold before the disposition of over-applied overhead
  3. Ending Work-in-process inventory balance
  4. Budgeted overhead rate for applying factory overhead
  5. Assuming the over-applied overhead is adjusted to the cost of goods sold (COGS), what is the adjusted COGS?

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ekkarill92 answered 2 years ago
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