Question

In the Vasquez Corporation, any overapplied or underapplied manufacturing overhead is closed out to Cost of Goods Sold. Last year, the Corporation incurred $27,000 in actual manufacturing overhead cost, and applied $29,000 of manufacturing overhead cost to jobs. The beginning and ending balances of Finished Goods were equal, and the Corporation's Cost of Goods Manufactured for the year totaled $71,000. Given this information, Cost of Goods Sold, after adjustment for any overapplied or underapplied manufacturing overhead, for the year must have been: Multiple Choice $98,000 $73,000 $71,000 $69,000

Answer 1

$69,000

Step-by-step explanation:

Calculation for overapplied or underapplied manufacturing overhead

Using this method

Manufacturing overhead=Cost of Goods Manufactured-( Actualmanufacturing overhead cost-Applied manufacturing overhead cost to job)

Let plug in the formula

Manufacturing overhead=71,000-(27,000-29,0000)

Manufacturing overhead=71,000-2,000

Manufacturing overhead=$69,000 overapplied

Therefore Manufacturing overhead for the year will be $69,000 overapplied