Question

Testbank, Question 111 Raw Material Work in Process Finished Goods 12.0001 Overhead Accounts 8.000 • The overhead is allocated to jobs using an estimated rate applied to direct labour hours. The budget for the year called for $180,000 of overhead cost and 60.000 direct labour hours, • Accounts payable is used for materials only. The balance on 9/1 was $6,000. September's payments were $40,000. September 1 finished goods inventory was $11,000. . Cost of jobs completed in September was $89,000. . On September 30 there was a single job unfinished, consisting of $1,300 (300 hours) of direct labour and $2,600 of direct material, 5,200 direct hours were worked during September. All workers earn the same rate of pay. • All actual overhead costs incurred have been recorded Cost of goods sold during September wars $89,000 $84,000 $100,000 $83,200

Explain both questions please.

Answer 1

1.
Overhead rate = $180000/60000 = $3 per hour
Overhead applied = 5200 x 3 = $15600
Over Applied overhead = $15600 - 14800 = $800

Cost of Goods Sold
Beginning Finsihed Goods Inventory	$                      11,000
Add : Cost of Goods manufactured	$                      89,000
Cost of Goods Available for sale	$                   100,000
Less : Ending Finsihed Goods Inventory	$                      16,000
Unadjusted Cost of Goods Sold	$                      84,000
Under-/Overapplied Overhead	$                          -800
Adjusted Cost of Goods Sold	$                      83,200

Answer is d. $83200

As per HOMEWORKLIB RULES, we are suppose to answer 1 question, i have answered 1, so kindly post others separately