Answer:
Instructions are listed below
Explanation:
Giving the following information:
Inventories:
Beginning Work in process $ 17,000
Ending WIP= $ 12,000
Beginning Finished goods $ 46,000
Ending Finished goods $ 50,000
Additional information:
Direct materials $ 57,000
Direct labor cost $ 87,000
Manufacturing overhead cost incurred $ 63,000
Manufacturing overhead cost applied $ 61,000
First, we need to calculate the cost of goods manufactured:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 17000 + 57000 + 87000 + 61000 - 12000= 210,000
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 46000 + 210000 - 50000 = 206,000
Adjusted COGS= COGS + under-allocated overhead= 206000 + 2000= 208,000
