Required: Oscar Corporation applies manufacturing overhead to production at 150% of direct labor cost. During the year ended 20xx, manufacturing overhead of $180,000 was applied to production; actual manufacturing overhead was $199,000. Beginning Work in Process Inventory was $20,000, and ending Work in Process Inventory was $24,000. Beginning Finished Goods Inventory was $42,000, and ending Finished Goods Inventory was $39,000. Sales for the year were $580,000, yielding a $117,000 gross profit. Complete the following schedule: (Hint: First determine adjusted cost of goods sold from the income statement data and work backward.) Item Direct materials used in production Direct labor Manufacturing overhead applied Total current manufacturing costs + Beginning work in process inventory - Ending work in process inventory Cost of goods manufactured + Beginning finished goods inventory - Ending finished goods inventory Unadjusted cost of goods sold Underapplied overhead adjustment Adjusted cost of goods sold Amount

Required: Oscar Corporation applies manufacturing overhead to production at 150% of direct labor cost. During the year ended 20x, manufacturing overhead of $180,000 was applied to production; actual manufacturing overhead was $199,000. Beginning Work in Process Inventory was $20,000, and ending Work in Process Inventory was $24,000. Beginning Finished Goods Inventory was $42,000, and ending Finished Goods Inventory was $39,000. Sales for the year were $580,000, yielding a $117,000 gross profit. Complete the following schedule: (Hint. First determine adjusted cost of goods sold from the income statement data and work backward.)