During last period,a company's overhead rate was 150% of direct labor cost.This caused factory overhead to be $10,000 overapplied.Use the following incomplete accounts to determine the cost of goods sold:

Question

Quizplus · Accepted Answer

Applied FOH = $50,000 actual + $10,000 overapplied = $60,000
Direct Labor = $60,000/1.5 = $40,000
Finished Goods
= GIP beg $10,000 + DM $80,000 + DL $40,000 + Applied FOH $60,000 - End GIP $20,000
= $170,000
Cost of Goods Sold
= Beg FG $30,000 + FG $170,000 - End FG $70,000
= $130,000

During Last Period,a Company's Overhead Rate Was 150% of Direct