Question - Hubley Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. The company has provided the following data for August:
Direct materials - $80,750
Direct Labor cost - $97,250
Manufacturing warhead cost Incurred - $64.000
Manufacturing overhead cost applied - $68,075
|
Inventories
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beginning
|
Ending
|
|
Work in process
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$14,500
|
$16,550
|
|
Finished goods
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$55,200
|
$33,750
|
The cost of goods sold that appears on the income statement for August and that has been adjusted for any underapplled or overapplied overhead is closest to:
$261,400
$269,550
$244,025
$265,475