Luebke Inc.has provided the following data for the month of November.The balance in the Finished Goods inventory account at the beginning of the month was $52,000 and at the end of the month was $30,000.The cost of goods manufactured for the month was $212,000.The actual manufacturing overhead cost incurred was $55,000 and the manufacturing overhead cost applied to Work in Process was $58,000.The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.The adjusted cost of goods sold that would appear on the income statement for November is:
A) $231,000
B) $190,000
C) $234,000
D) $212,000

Question

Quizplus · Accepted Answer

Manufacturing overhead underapplied (overapplied) = Actual manufacturing overhead incurred - Manufacturing overhead applied = $55,000 - $58,000 = $3,000 overapplied
Adjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory - Manufacturing overhead overapplied
= $52,000 + $212,000 - $30,000 - $3,000
= $231,000