overhead to individual jobs based on the machine hours required. At the beginning of theyear, the company
Question:
overhead to individual jobs based on the machine hours required. At the beginning of theyear, the company expected to incur thefollowing:
manufacturing overhead cost. . . . . . . .$650,000
Direct labour cost. . . . . . . . . . . . . . . . . .1,500,000
Machine hours. . . . . . . . . . . . . . . . . . . .81,250
At the end of theyear, the company had actually incurred thefollowing:
Direct labour cost. . . . . . . . . . . . . . . . . . . . . . . . . $1,210,000
Depreciation on manufacturing equipment. . . . . 500,000
Property taxes on plant. . . . . . . . . . . . . . . . . . 20,000
Sales salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Delivery drivers' wages. . . . . . . . . . . . . . . . . . .15,000
Plant janitors' wages. . . . . . . . . . . . . . . . . . . . . 10,000
Machine hours. . . . . . . . . . . . . . . . . . . . . . . . . . 65,000 hours
the accountant found an error in the expense records from the year reported. Depreciation on manufacturing plant and equipment was actually $450,000, not the $500,000 as originally reported. The unadjusted cost of goods sold balance at year-end was $700,000. What is the adjusted ending balance of cost of goods
Managerial Accounting
ISBN: 9780135443446
4th Canadian Edition
Authors: Karen Braun, Wendy Tietz, Louis Beaubien