Question

Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1December 31 Direct materials$87,000$50,000 Work in process 76,000 52,000 Finished goods 125,000 110,000 Other information Direct materials purchases $334,000 Cost of goods available for sale 970,000 Actual factory overhead costs 270,000 The cost of goods sold (before adjustment for under or overapplied overhead) is:

Answer 1

Answer:

$860,000

Explanation:

Calculation for what the cost of goods sold (before adjustment for under or overapplied overhead) is:

Using this formula

Cost of goods sold (before adjustment for under or overapplied overhead)=Cost of goods available for sale - Ending finished goods inventory

Let plug in the formula

Cost of goods sold (before adjustment for under or overapplied overhead)= $970,000 - $110,000

Cost of goods sold (before adjustment for under or overapplied overhead)= $860,000

Therefore the cost of goods sold (before adjustment for under or overapplied overhead) is:$860,000