Question

Morrow Corporation had only one job in process during May-Job X322—and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below: Job x32Z 5,100 $ $ Beginning balance Charged to the job during May Direct materials Direct labor Manufacturing overhead applied Units completed Units in process at the end of May Units sold during May eu 8,200 2,100 4,100 100 0 45 In May, overhead was overapplied by $310. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied. Required: 1. Using the direct method, what is the cost of goods sold for May? Cost of goods sold

Answer 1

1
Beginning balance	5100
Direct materials	8200
Direct labor	2100
Manufacturing overhead applied	4100
Total job cost	19500
Divide by Units completed	100
Unit product cost	195
X Units sold during May	45
Unadjusted cost of goods sold	8775
Deduct: Overapplied overhead	310
Cost of goods sold	8465
2
Units in ending inventory	55	=100-45
X Unit product cost	195
Total cost of ending finished goods inventory	10725
3
Ending work in process inventory	0