Question

QUESTION 1 Falwell Inc., which uses job-order costing, has provided the following data for June: Inventories: Work in process .... Finished goods ....... Beginning $15,000 $38,000 Ending $22,000 $37,000 Costs: Direct materials ............ Direct labor cost ............ Manufacturing overhead cost applied .... $77,000 $87,000 $58,000 The unadjusted cost of goods sold in other words, cost of goods sold before adjusting for any underapplied or overapplied overhead) for June is closest to: $222,000 $212,000 $215,000 $216,000

Answer 1

Amount $ 77,000 $ 87,000 $ 58,000 $ 222,000 $ 15,000 Particulars 2 Direct materials 3 Direct labor cost 4 Manufacturing overhead cost applied 5 Total manufacturing costs incurred during year 6 Add: Beginning work in process inventory 7 Less: Ending work in process inventory 8 Cost of goods manufactured 9 Add: Beginning finished goods inventory 10 Less: Ending finished goods inventory 11 Unadjusted Cost of goods sold 12 13 Hence, the correct option is $216,000. $ 215,000 $ 38,000 $ -37,000 $ 216,000

A Particulars Amount 2 Direct materials 77000 3 Direct labor cost 87000 4 Manufacturing overhead cost applied 58000 5 Total manufacturing costs incurred during year 1=+B2+B3+B4 6 Add: Beginning work in process inventory 15000 7 Less: Ending work in process inventory -22000 8 Cost of goods manufactured =+B5+B6+B7 9 Add: Beginning finished goods inventory 38000 10 Less: Ending finished goods inventory -37000 11 Unadjusted Cost of goods sold =+B8+B9+B10 12 13 Hence, the correct option is $216,000.