Question

A company had an unadjusted Cost of Goods Sold of $1,690,000. The company closes its underapplied or overapplied overhead to Cost of Goods Sold. The company had actual manufacturing overhead of $650,000 and applied manufacturing overhead of $666,250. What is the adjusted Cost of Goods Sold for the year

Answer 1

Answer:

"$1,673,750" is the appropriate answer.

Explanation:

The given values in the question are:

Applied overhead,

= $666,250

Actual overhead,

= $650,000

Unadjusted cost,

= $1,690,000

Now,

The overapplied overhead will be:

= $Applied \ overhead-Actual \ overhead$

= $666,250-650,000$

= $16,250$ ($)

hence,

The goods sold's adjusted cost will be:

= $Unadjusted \ cost-Overapplied \ overhead$

= $1,690,000-16,250$

= $1,673,750$ ($)