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[Fact Pattern #5] The SD Co. provided the information shown below. SD has adopted a job-order cost system. A predetermined overhead rate based upon direct
[Fact Pattern #5] The SD Co. provided the information shown below. SD has adopted a job-order cost system. A predetermined overhead rate based upon direct labor hours is used to apply overhead costs. Any over- or underapplied overhead is allocated by the theoretically correct method. Actual conversion costs were 200% of direct materials used. Inventories before adjustment: Direct materials Work-in-process Finished goods Dec. 1 $ 50,000 50,000 140,000 Dec. 31 $ 70,000 80,000 120,000 Other data before adjustment: Cost of goods sold Overhead applied Prime costs Actual overhead Month of Dec. $600,000 200,000 410,000 220,000 I [16] (Refers to Fact Pattern 5) What was the cost of goods manufactured credited to the work-in-process account prior to the closing entry for overhead allocation for December? A. $580,000 B. $620,000 C. $630,000 D. $650,000
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