Grimaud Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company's cost of goods manufactured for January was $142,000 and its beginning and ending inventories were: During the month,the manufacturing overhead cost incurred was $62,000 and the manufacturing overhead cost applied was $66,000.
Required:
Determine the cost of goods sold that would appear on the income statement for January;in other words,determine the cost of goods sold after adjustment for any underapplied or overapplied overhead.Show your work!

Question

Grimaud Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company's cost of goods manufactured for January was $142,000 and its beginning and ending inventories were:  During the month,the manufacturing overhead cost incurred was $62,000 and the manufacturing overhead cost applied was $66,000.
Required:
Determine the cost of goods sold that would appear on the income statement for January;in other words,determine the cost of goods sold after adjustment for any underapplied or overapplied overhead.Show your work!

Quizplus · Accepted Answer

The Answer of Grimaud Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company's cost of goods manufactured for January was $142,000 and its beginning and ending inventories were:  During the month,the manufacturing overhead cost incurred was $62,000 and the manufacturing overhead cost applied was $66,000.
Required:
Determine the cost of goods sold that would appear on the income statement for January;in other words,determine the cost of goods sold after adjustment for any underapplied or overapplied overhead.Show your work!