Question

Finn Inc., which uses job-order costing, has provided the following data for September:

Inventories:	Beginning	Ending
Work in process	$22,000	$23,000
Finished goods	$49,000	$33,000

Costs:
Direct materials	$	70,000
Direct labor cost	$	85,000
Manufacturing overhead cost applied	$	70,000

The unadjusted cost of goods sold (in other words, cost of goods sold before adjusting for any underapplied or overapplied overhead) for September is closest to:

$245,000

$224,000

$225,000

$240,000

Answer 1

Answer: $240,000

Beginning work in process inventory		22000
Direct materials	70000
Direct labor	85000
Manufacturing overhead applied	70000
Total manufacturing costs		225000
Total cost of work in process		247000
Less: Ending work in process inventory		23000
Cost of goods manufactured		224000
Add: Beginning finished goods inventory		49000
Goods available for sale		273000
Less: Ending finished goods inventory		33000
Unadjusted cost of goods sold $		240000