Hubley Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed...
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Hubley Inc. uses a job-order costing system in which anyunderapplied or overapplied overhead is closed out to cost of goodssold at the end of the month. The company has provided thefollowing data for August:
Directmaterials $ 79,000 Direct labor cost S 97,500 Manufacturing overhead costincurred $ 64,100 Manufacturing overhead costapplied $ 68,250
Inventories: Beginning Ending Work in process $15,000 $17,100 Finished goods $58,150 $34,500
The cost of goods sold that appears on the income statement forAugust and that has been adjusted for any underapplied oroverapplied overhead is closest to:
$262,150
$270,450
$242,650
$266,300
Hubley Inc. uses a job-order costing system in which anyunderapplied or overapplied overhead is closed out to cost of goodssold at the end of the month. The company has provided thefollowing data for August:
| Directmaterials | $ | 79,000 |
| Direct labor cost | S | 97,500 |
| Manufacturing overhead costincurred | $ | 64,100 |
| Manufacturing overhead costapplied | $ | 68,250 |
| Inventories: | Beginning | Ending |
| Work in process | $15,000 | $17,100 |
| Finished goods | $58,150 | $34,500 |
The cost of goods sold that appears on the income statement forAugust and that has been adjusted for any underapplied oroverapplied overhead is closest to:
$262,150
$270,450
$242,650
$266,300
Answer & Explanation Solved by verified expert
4.1 Ratings (798 Votes)
Answer: $262,150
workings
| Hubley Inc. | |
| Statement of cost of goods manufactured | |
| For the month of August | |
| Direct Materials | 79,000 |
| Direct Labour | 97,500 |
| Manufacturing overhead cost applied | 68,250 |
| Total Manfucature costs incurred | 2,44,750 |
| Add: Work In progess Inventory, August 1 | 15,000 |
| Total manufacturing costs | 2,59,750 |
| Less : Work In progess Inventory , August 31 | -17,100 |
| Cost Goods Manufactured | 2,42,650 |
| Hubley Inc. | |
| Income Statement | |
| For the month of August | |
| Cost Goods Manufactured | 2,42,650 |
| Add : Finshed Goods Inventory , August 1 | 58,150 |
| Finished Goods Available for Sale | 3,00,800 |
| Less:Finshed Goods Inventory , August 31 | -34,500 |
| Cost of Goods Sold | 2,66,300 |
| Less : Overapplied overhead | -4150 |
| Adjusted Cost of Goods Sold | 2,62,150 |
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