Roofe Inc. has provided the following data for the month of October. 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 $2,000.
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 October after allocation of any underapplied or overapplied overhead for the month is closest to:
A) $241,320
B) $237,960
C) $241,640
D) $237,640

Question

Roofe Inc. has provided the following data for the month of October. 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 $2,000.
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 October after allocation of any underapplied or overapplied overhead for the month is closest to:
A) $241,320 
B) $237,960 
C) $241,640 
D) $237,640

Quizplus · Accepted Answer

The correct cost of goods sold after adjusting for underapplied or overapplied overhead is $241,320.

Roofe Inc Has Provided the Following Data for the Month of of October