Question: Krall Kabinets produces custom cabinetry for homes which is sold

Krall Kabinets produces custom cabinetry for homes, which is sold nationwide. The company adds overhead costs to cabinetry projects at the rate of $7.75 per direct labor hour. The company 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, Krall found that it had actually incurred overhead costs of $145,000. If Krall adjusts over- or underapplied overhead to cost of goods sold at the end of the year, what is Krall’s cost of goods sold afteradjustment?

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  • CreatedMarch 11, 2015
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