a) For June 30th of 2017, Company X reported raw materials balance of TL20,000, WIP balance of TL25,000 and finished goods balance of TL40,000 in its balance sheet. During July;

Direct labor of TL254,000 and raw materials of TL350,800 was used.

TL360,000 worth of raw materials was purchased.

Manufacturing overhead used (exclusive of indirect materials) was equal to 60% of direct labor costs. At the end of July, sales totalled TL1,247,000 and gross profit was 40% of the sales. COGS available for sale equalled TL770,600. Calculate the balance of finished goods as of July 31st.

b) Company X applies MOH to jobs on the basis of machine hours used. MOH costs are expected to total TL300,700 for the year, and machine usage is estimated at 128,000 hours. For the year, TL322,800 MOH costs are incurred and 130,040 machine hours are used. Calculate the amount of COGS adjustment at year-end.