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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
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: $
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