Answer:
Five Star Manufacturing
The finished goods inventory at the end of June after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:
$30,220
Explanation:
a) Data and Calculations:
Work in Process Finished Goods Cost of Goods Sold Total
Direct Materials $1,700 $6,300 $22,200 $30,200
Direct Labor $7,780 $15,750 $55,500 $79,030
Overhead Applied $4,320 $6,840 $24,840 $36,000
Total $13,800 $28,890 $102,540 $145,230
Allocation of overapplied
Overhead $840 $1,330 $4,830 $7,000
Adjusted Total $14,640 $30,220 $107,370 $152,230
Manufacturing overhead overapplied by $7,000
Basis of apportionment of overapplied overhead: overhead applied
Work in Process Finished Goods Cost of Goods Sold Total
Basis ratio 0.12 0.19 0.69 1
Overapplied
overhead $840 $1,330 $4,830 $7,000
