JSOM Company makes custom furniture and uses a joborder-cost system.The company always writes off under/over applied overhead to cost of goods sold.The following data pertains to the first quarter of 2020:

Beginning direct-materials inventory$26,000

Beginning WIP inventory64,000

Beginning finished-goods inventory58,000

Direct materials purchased $148,000

Direct materials requisitioned82,000

Direct-labor cost incurred120,000

Factory overhead incurred146,000

Cost of goods completed (Cost of goods manufactured)292,000

Cost of goods sold (before adjustment for under or over-applied overhead)256,000

Manufacturing overhead application rate (applied as a % of direct labor cost)125%

Required:

1)Ending inventory of direct material

2)$ overhead applied

3)Ending WIP inventory

4)Ending finished goods inventory

5)Overhead adjustment (specify under or over-applied overhead)

6)Adjusted cost of goods sold

Answer rating: 100% (QA)

1 Ending Inventory of Direct Materials To calculate the ending inventory of direct materials we use the following formula Ending Direct Materials Inve... View the full answer