Rauth Inc. uses a job-order costing in which any underapplied or overapplied overhead is closed out to
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Question:
Rauth Inc. uses a job-order costing in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. The company's cost of goods manufactured for August was $186,000; its beginning finished goods inventory was $60,250; its ending finished goods inventory was $39,600; its manufacturing overhead was underapplied by $3,500. Required: Determine the cost of goods sold that would appear on the income statement for August; in other words, determine the cost of goods sold after adjustment for any underapplied or overapplied overhead.
Related Book For
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
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