Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any underapplied or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following transactions were recorded by the company:
-The Cost of Goods Manufactured for March was:

Question

Lund Company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. Any underapplied or overapplied manufacturing overhead cost is closed out to Cost of Goods Sold at the end of the month. During March, the following transactions were recorded by the company: 
-The Cost of Goods Manufactured for March was:

Quizplus · Accepted Answer

The Cost of Goods Manufactured is calculated as follows:
Beginning work in process inventory + Total manufacturing costs - Ending work in process inventory
($8,000 + $58,000) - $6,500 = $59,500

Lund Company Applies Manufacturing Overhead to Jobs Using a Predetermined