Question: Geoff s Golf Clubs produces custom golf clubs which are sold

Geoff’s Golf Clubs produces custom golf clubs, which are sold nationwide. The company adds overhead costs to jobs at the rate of $8.00 per direct labor hour. It accumulates overhead costs in a separate 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:

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, Geoff’s found that it had actually incurred overhead costs of $123,000. If Geoff’s adjusts over- or underapplied overhead to cost of goods sold at the end of the year, what is Geoff’s cost of goods sold afteradjustment?
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  • CreatedMarch 11, 2015
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