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Tucson Co. uses a normal costing system. Factory (or Manufacturing) overhead is applied at a budgeted rate based on direct labor cost. At the end
Tucson Co. uses a normal costing system. Factory (or Manufacturing) overhead is applied at a budgeted rate based on direct labor cost. At the end of the period, there are two unfinished jobs. Additional information is available as follows: Direct materials used $ 50,000 Direct labor costs $100,000 Beginning Work-in-process inventory $100,000 Cost of goods manufactured $150,000 Beginning Finished goods inventory $140,000 Ending Finished goods inventory $110,000 Actual factory overhead incurred $ 90,000 Factory overhead is over-applied by $60,000. REQUIRED: (Show your detailed calculations!) Determine the following amounts: 1. Applied factory overhead 2. Cost of goods sold (COGS) before the disposition of over-applied overhead 3. Ending Work-in-process inventory balance 4. Budgeted overhead rate used for applying factory overhead 5. Assuming the over-applied overhead is adjusted to the COGS, what is the adjusted COGS
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