Question
Hubley 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
Hubley 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 has provided the following data for August:
Direct materials $ 74,500
Direct labor cost S 110,500
Manufacturing overhead cost incurred $ 72,300
Manufacturing overhead cost applied $ 77,350
Inventories: Beginning Work in process $19,000
Ending work in process $21,575
Finished goods beginning $62,050
ending $40,500
The cost of goods sold that appears on the income statement for August and that has been adjusted for any underapplied or overapplied overhead is closest to:
a. $276,275
b. $286,375
c. $259,775
d. $281,325
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