Question

Bledsoe Corporation has provided the following data for the month of November: Inventories: Raw materials Work in process Finished Goods Beginning Ending $ 26,700 $22,700 $ 18,700 $11,700 $ 49,700 $57,700 Additional information: Raw materials purchases Direct labor cost Manufacturing overhead cost incurred Indirect materials included in manufacturing overhead cost incurred Manufacturing overhead cost applied to Work in Process $73,700 $93,700 $43,870 $ 4,170 $42,700 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold. Complete this question by entering your answers in the table below. < Prev 3 of 5 * Next > to search

what is the under applied overhead? thanks

Answer 1

Applied overhead = 42700

Actual overhead = 43870

Applied overhead is lower than actual overhead so overhead is under applied overhead

Under applied overhead = 43870-42700 = 1170

Beginning finished goods inventory	49700
Add: Cost of goods manufactured	216930
Cost of goods available for sale	266630
Less: Ending finished goods inventory	57700
Unadjusted cost of goods sold	208930
Add: Under applied overhead	1170
Adjusted cost of goods sold	210100