Cienfuegos Corporation has provided the following data concerning last month's operations. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A)$157,000
B)$154,000
C)$161,000
D)$197,000

Question

Cienfuegos Corporation has provided the following data concerning last month's operations.   The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A)$157,000 
B)$154,000 
C)$161,000 
D)$197,000

Quizplus · Accepted Answer

To calculate the adjusted cost of goods sold, we need to add the actual manufacturing overhead (given as $60,000) to the applied manufacturing overhead (calculated as 120% of actual direct labor costs, which is $94,000 in this case). This gives us the total manufacturing overhead cost of $154,000. Since Cienfuegos Corporation closes out any underapplied or overapplied manufacturing overhead to cost of goods sold, we do not need to make any further adjustments to cost of goods sold. Therefore, the adjusted cost of goods sold is $154,000. Schedule of Cost of Goods Manufactured 11ea7998_5f05_3cc8_911b_0f62ed1dcbda_TB2627_00_TB2627_00 Schedule of Cost of Goods Sold 11ea7998_5f05_63d9_911b_8b5a3d30bfc9_TB2627_00_TB2627_00

Cienfuegos Corporation Has Provided the Following Data Concerning Last Month's