Mcgarey Inc. has provided the following data for the month of November. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was underapplied by $12,000.
The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.
-The cost of goods sold for November after allocation of any underapplied or overapplied overhead for the month is closest to:
A) $253,350
B) $275,310
C) $255,390
D) $277,350

Question

Mcgarey Inc. has provided the following data for the month of November. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.  Manufacturing overhead for the month was underapplied by $12,000.
The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.
-The cost of goods sold for November after allocation of any underapplied or overapplied overhead for the month is closest to:
A) $253,350 
B) $275,310 
C) $255,390 
D) $277,350

Quizplus · Accepted Answer

The Answer of Mcgarey Inc. has provided the following data for the month of November. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.  Manufacturing overhead for the month was underapplied by $12,000.
The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.
-The cost of goods sold for November after allocation of any underapplied or overapplied overhead for the month is closest to:
A) $253,350 
B) $275,310 
C) $255,390 
D) $277,350