Hey Corporation produces a single product. 

Manufacturing overhead costs are allocated by $6 per direct labor hour. 

The beginning balance of material account is $10,000 and the ending balance of material account is $15,000. 

All materials are used as direct materials and not as indirect materials. 

The total manufacturing cost for production is $650,000 and the cost of goods manufactured is $640,000. 

The direct labor cost for production is $250,000, and Hey Corporation finds out actual direct labor hours are 20,000 hours. 

Additionally, Hey Corporation finds out the actual manufacturing overhead costs are $160,000, the beginning inventory of the work in process account is $150,000, there is no beginning inventory of the finished goods account, and the ending inventory of the finished goods account is $100,000. 

If Hey Corporation uses the disposition method of under- or overapplied overhead by closing the under- or overapplied overhead to work in process, finished goods, and cost of goods sold, what would be the amount of cost of goods sold after the disposition of under- or overapplied overhead?

Answer rating: 100% (QA)

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