Allocation of the under applied or over applied


Burkhammer Inc. has provided the following data for the month of August. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

work in finished cost of
process goods goods sold total

direct materials $2260 $ 12180 $81480 $95920
direct labor 1900 14500 97000 113400
manufacturing overhead
applied 1590 6890 44520 53000

total 5750 33570 223000 262320

Manufacturing overhead for the month was underapplied by $9,000.

The company allocates any under applied or over applied 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.

Required: Determine the cost of work in process, finished goods, and cost of goods sold AFTER allocation of the under applied or over applied overhead for the period.

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Accounting Basics: Allocation of the under applied or over applied
Reference No:- TGS0713794

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