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: $ 7,400 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 $ $ $ 13,000 5,100 6,700 280 0 130 In May, overhead was overapplied by $480. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied. Required: Using the indirect method, determine the cost of goods sold for May. Cost of goods sold

Answer 1

Calculation of Cost of Goods Sold Particulars Beginning balance Direct materials Direct labor Manufacturing overhead applied Total job cost Divide by Units completed Unit product cost Units sold during May Unadjusted cost of goods sold Less: Overapplied overhead Cost of goods sold Amount $ 7,400 $ 13,000 $ 5,100 $ 6,700 $ 32,200 280 $ 115 $ 130 $ 14,950 $ 480 $ 14,470 * Kindly Comment down for any clarifications/ queries and please upvote.