Reference no: EM131259792
B&B uses a predetermined manufacturing overhead rate based on machine-hours. for the month of October:
Estimated overhead cost............300000
Actual overhead cost.................375000
Estimated machine-hours...........10000
Actual maching hours................11000
before disposition of the underapplied/overapplied overhead, balances from B&B's accounting records on October 30th are as follows:
sales.....................................1,200.000
cost of goods sold...................720000
Inventories:
Work in process.........................80000
Finished Goods..........................100000
Overapplied or underapplied overhead is allocated to applicable inventories and cost of goods sold based on month end balances. In B&B's October income statement, it should report cost of goods sold of:
A. $ 684500
B. $ 720000
C. $682500
D. $756000
E. $ 757000
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