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A company adds overhead costs to jobs at the rate of $8 per direct labor hour. It accumulates overhead costs in a seperate manufacturing overhead account and uses normal costing to assign overhead. The following data provide details of the company's activity and balances during the last half of the year:
July 1 December 1DM inv. $62,250 $63,750Work in Proc. Inv. 46,000 45,500Fin. Goods Inv. 26,150 25,000Monthly production data:Direct mat. Purch. 157,000Direct Labor cost 272,000
a) Calculate the cost of direct materials used during the period.b) Calculate the cost of goods manufactured during the period.c) At the end of December, the company found that it had actually incurred overhead cost of $123,000. IF the company adjusts over or underapplied overhead to cost of goods sold at the end of the year, what is the cost of goods sold after adjustment?
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