Add: Beginning work in process
23,000 246,000
Deduct: Ending work in process
17,000
Cost of goods manufactured
$229,000
Overhead over or underapplied Actual manufacturing overhead incurred
$54,000
Manufacturing overhead applied to Work in Process
56,000
Underapplied (overapplied) manufacturing overhead
($2,000)
Finished goods inventory, beginning
$37,000
Add: Cost of goods manufactured
229,000
Cost of goods available for sale
266,000
Deduct: Finished goods inventory, ending
55,000
Unadjusted cost of goods sold
211,000
Deduct: Overapplied overhead
2,000
Adjusted cost of goods sold
$209,000
AACSB: Analytical Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Blooms: Apply Learning Objective: 02-06 Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. Learning Objective: 02-07 Compute underapplied or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. Level of Difficulty: 2 Medium Topic Area: Underapplied and Overapplied Overhead Topic Area: Using T-accounts in Job-Order Costing
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