Morris Company provide the cost data for the month of January, 2018.

Inventories: January 1 January 31

Direct materials $30,000 $40,000

WIP $15,000 $20,000

Finished Goods $65,000 $50,000

Other information:

Factory overhead applied: $150,000

Cost of goods manufactured: $515,000

Direct materials used: $190,000

Actual factory overhead: $144,000

Question/s:

1. Adjusted COGS if under or over applied overhead were closed to COGS?

2. Adjusted COGS if under or applied overhead were allocated to inventories and COGS?