Reference no: EM132581111
A company has provided the following data for the month of May:
Inventories:
Beginning Ending
Work in process $30,000 $25,000
Finished goods $59,000 $63,000
Additional information:
Direct materials $70,000
Direct labor cost $100,000
Manufacturing overhead cost incurred $76,000
Manufacturing overhead cost applied to Work in Process $74,000
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Question 1: The adjusted cost of goods sold (that is, cost of goods sold adjusted for underapplied or overapplied overhead) for May is:
Multiple Choice
Option 1: $247,000
Option 2: $245,000
Option 3: $249,000
Option 4: $244,000