Question

Ch 4: Homework Assignment 202. Principles of Managerial Accounting ACTG 202-004: Spring 2020 MWF 2.10pm Shane Higgins Question of 7) Instructions Sex Morrow Corporation had only one job in process during May-Job X322-and had no finished goods inventory on May 1. Job X322 was started in April and finished during May Data concerning that job appear below Beginning balance OXU Charged to the job during May $ 5.500 Direct materials 8,500 Direct labor Manufacturing overhead acolod Units completed Units in process at the end of May Units sold during May In May, overhead was overapplied by $350. The company adjusts its cost of goods sold every month for the amount of the overhead that was undercplied or overled Required: 1. Using the direct method, what is the cost of goods sold for May? Cost of goods sold 2. What is the total value of the finished goods inventory at the end of May? Type here to search J .meran horen we ons moeten worden

Answer 1

1	Cost of goods sold	$       8,750
2	Total cost of Ending Finished goods Inventory	$     11,900
3	Ending Work - in process Inventory	0
	Workings:
	Morrow Corporation
	Beginning Inventory	$       5,500
	Direct Materials	$       8,500
Add:	Direct Labor	$       2,500
Add:	Manufacturing overheads applied	$       4,500
(i)	Total manufacturing cost	$     21,000
(ii)	Completed units	150
(i) / (ii)	Unit cost	$           140
	Unadjusted cost of goods sold (65 X $140)	$       9,100
Add:	overapplied Overheads	$         -350
	Adjusted cost of goods sold	$       8,750
	Total cost of Ending Finished goods Inventory:	=	(Units completed - Units sold) X Unit cost
		=	(150 - 65) X $140
		=	$                                                                     11,900