Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the information below to answer the two questions that follow. A company uses a job order costing system and applies Manufacturing Overhead (MOH) based

image text in transcribedimage text in transcribedimage text in transcribed

Use the information below to answer the two questions that follow. A company uses a job order costing system and applies Manufacturing Overhead (MOH) based on Machine Hours (MHS). The company provided the follow ing information for the most recent month of operations: Direct materials purchased Estimated MHs for the month Actual MHs worked in the month Actual Direct Labor cost used in production Estimated MOH Actual MOH $40,000 7,000 MHS 7,500 MHS $25,000 $56,000 $68,000 Inventory Balances at the beginning and end of the month were as follows: Raw Materials (all direct) Work in Process Finished Goods Beg. Balance $11,300 $43,000 $62,000 End. Balance $16,600 $22,000 $83,000 Q: Before closing any over- or under-applied MOH, what is the amount of unadjusted Cost of Goods Sold for the month? ANS: $ Q: The company's sales revenue of the month was $302,500. If the company closed any under- or over-applied MOH costs to Cost of Goods Sold at the end of the month, what would be the gross margin after the adjustment? ANS: $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

describe the key characteristics of a theoretical model in general;

Answered: 1 week ago