Company X applies MOH to jobs on the basis of machine hours used. MOH costs are expected to total TL300,700 for the year, and machine usage is estimated at 123,000 hours. For the year, TL322,300 MOH costs are incurred and 130,070 machine hours are used. Calculate the amount of COGS adjustment at year-end.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 3EA: A company estimated 100,000 direct labor hours and $800,000 in overhead. The actual overhead was...
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Company X applies MOH to jobs on
the basis of machine hours used.
MOH costs are expected to total
TL300,700 for the year, and machine
usage is estimated at 123,000 hours.
For the year, TL322,300 MOH costs
are incurred and 130,070 machine
hours are used.
Calculate
the amount of COGS
adjustment at year-end.
Transcribed Image Text:Company X applies MOH to jobs on the basis of machine hours used. MOH costs are expected to total TL300,700 for the year, and machine usage is estimated at 123,000 hours. For the year, TL322,300 MOH costs are incurred and 130,070 machine hours are used. Calculate the amount of COGS adjustment at year-end.
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