Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $58,900 and $34,000 in them, respectively. There was no Work-in-Process at the beginning or end of 2016. During the year, manufacturing overhead costs of $88,000 were actually incurred. The balance in the Applied Manufacturing Overhead was $92,900 at the end of 2016. If the under-or overapplied overhead is prorated between the Cost of Goods Sold and the inventory accounts, how much will be the Cost of Goods Sold after the proration? a. $60,693. b. $57,107. c. $59,417. d. $55,793.
Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $58,900 and $34,000 in them, respectively. There was no Work-in-Process at the beginning or end of 2016. During the year, manufacturing overhead costs of $88,000 were actually incurred. The balance in the Applied Manufacturing Overhead was $92,900 at the end of 2016. If the under-or overapplied overhead is prorated between the Cost of Goods Sold and the inventory accounts, how much will be the Cost of Goods Sold after the proration? a. $60,693. b. $57,107. c. $59,417. d. $55,793.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Before prorating the manufacturing overhead costs at the end of
2016, the Cost of Goods Sold and Finished Goods Inventory had
applied overhead costs of $58,900 and $34,000 in them,
respectively. There was no Work-in-Process at the beginning or
end of 2016. During the year, manufacturing overhead costs of
$88,000 were actually incurred. The balance in the Applied
Manufacturing Overhead was $92,900 at the end of 2016. If the
under-or overapplied overhead is prorated between the Cost of
Goods Sold and the inventory accounts, how much will be the Cost
of Goods Sold after the proration?
a. $60,693.
b. $57,107.
c. $59,417.
d. $55,793.
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