Question

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? > shift í rotal ia cro uni Rag time company had the following info for the year $ 12,300 $ 158,100 /Direct + 'materials used Direet labor incurred (61200 hours $1265,800 Actual manusalting overhead ineurred Ragtime company used a predetermined overncad rare of $44 per direet labor hour for the years. Assume the only inventary balance is an ending work in process invenry barone of $17,300. what was ajusted cost of goods sold? -$5445,500 - $5181900 3525,900 - $536,200

Answer 1

Schedule of Cost of Goods Sold
Direct materials	112,300
Direct labor	158,100
Manufacturing overhead applied	272,800
total manufacturing cost	543,200
Work in process inventory, ending	-17,300
Cost of goods manufactured	525,900
Over applied manufacturing overhead	-7,000
Adjusted Cost of goods sold	$518,900

Adjusted cost of goods sold is $518,900.

Second option is correct.

Working:

Predetermined overhead rate = $44 per direct labor hour

Actual direct labor hours = 6,200

Manufacturing overhead applied = Actual direct labor hours x Predetermined overhead rate

= 6,200 x 44

= $272,800

Actual manufacturing overhead = $265,800

Over applied manufacturing overhead = Manufacturing overhead applied- Actual manufacturing overhead =

= 272,800-265,800

= $7,000

Kindly comment if you need further assistance. Thanks