Question

19) Boursaw Corporation has provided the following data concerning last month's operations. Purchases of raw materials $33,000 Indirect materials included in manufacturing overheads 4,000 Direct labor cost $58,000 Manufacturing overhead applied to Work in Process $78,000 Underapplied overhead 5,000 Beginning Ending Raw materials inventory S 10,000$15,000 Work in process inventory s 56,000/s 72,000 Finished goods inventory S 41,000 49,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold? A) $136,000 B) $185,000 C) $144,000 D) $141,000

Answer 1

144,000 is the answer

Answer 2

Solution: Option D is Correct i.e., $ 141000 Preparation of Adjusted cost of goods Sold Amount Cost of goods manufactured Particulars Amount Direct materials Beginning Raw materials inventory $ 10,000 Add: Purchase of Raw materials $ 33,000 Total Raw materials available $ 43,000 Less: Ending raw material inventory $ -15,000 Raw materials used in production $ 28,000 Less: Indirect materials included ni manufacturing overh $ -4,000 Direct materials Direct Labour Manufacturing overhead applied to work in process Total manufacturing costs Add: Beginning work-in-process $ 24,000 $ 58,000 $ 78,000 $ 1,60,000 $ 56,000 $ 2,16,000 $ -72,000 $ 1,44,000 Less: Ending work in process Cost of goods manufactured Adjusted cost of goods sold Beginning Finished goods inventory Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Unadjusted cost of goods sold Add: underapplied Overhead Adjusted cost of goods sold $ 41,000 $ 1,44,000 $ 1,85,000 $ -49,000 $ 1,36,000 $ 5,000 $ 1,41,000 * Kindly Comment down for any further clarifications/ queries and please upvote.