Question

X Manufacturing uses a normal cost system and had the following data available for 20x8:
	Direct materials purchased on account	$148,000
	Direct materials requisitioned	98,000
	Direct labor cost incurred	127,000
	Factory overhead budgeted	151800
	Factory overhead incurred	138,200
	Cost of goods sold	260,000
	Beginning direct materials inventory	34,000
	Beginning WIP inventory	70,000
	Beginning finished goods inventory	55,000
	Ending finished goods inventory	104,000
	Overhead application rate, as a percent of direct-labor costs	115%
Round your answers to the nearest dollar. Fill in the blank without $ or comma or period, e.g., 12345
What is the adjusted cost of goods sold assuming the over/under applied overhead is immaterial?

Answer 1

Unadjusted Cost of Goods sold	260,000
Less: Overapplied Overhead	(7,850)
Adjusted cost of Goods sold	252,150
Note 1: Calculate applied Overhead
Direct Labour cost	127,000
Overhead applied	146,050	(127000*115%)
Note 2:
Actual Overhead Incurred	138,200
Less: overhead applied	146,050
Overapplied Overhead	7,850