Question

Luebke Incorporated has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $55,000 and at the end of the month was $30,300. The cost of goods manufactured for the month was $213,500. The actual manufacturing overhead cost incurred was $55,900 and the manufacturing overhead cost applied to Work in Process was $59,200. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is:

Answer 1

Answer:

234,900

Explanation:

Calculation to determine what The adjusted cost of goods sold that would appear on the income statement for November is:

First step is calculate the Over applied overhead

Over applied overhead = $59,200-$55,900

Over applied overhead = 3300

Second step is calculate the Unadjusted cost of goods sold

Unadjusted cost of goods sold = 55000+$213,500-30,300

Unadjusted cost of goods sold= 238,200

Now let determine the Adjusted cost of goods sold

Adjusted cost of goods sold = $238,200-3300

Adjusted cost of goods sold= 234,900

Therefore The adjusted cost of goods sold that would appear on the income statement for November is:234,900