ABC Company produces a line of watches. The company uses a normal costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2018: Budgeted manufacturing overhead cost Budgeted direct manufacturing labor cost Actual manufacturing overhead cost Actual direct manufacturing labor cost $150,000 $300,000 $142,000 $276,000 Inventory balances on December 31, 2018, were as follows: Direct manufacturing labor cost in ending balance Accounts Work in process Finish goods Cost of goods sold Ending Balance 205,000 30,360 256,000 55,200 609,000 190,440 By using the (Write-off Approach) to adjust the under- or overallocated manufacturing overhead amount, what is the ending balance of "Cost of Goods Sold"? 1. O617,000. 2. O613,000. 3. O 620,000. 4. O633,000. 5. ONone of the above.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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ABC Company produces a line of watches. The company uses a normal costing system and allocates
manufacturing overhead using direct manufacturing labor cost. The following data are for 2018:
Budgeted manufacturing overhead cost
Budgeted direct manufacturing labor cost
Actual manufacturing overhead cost
Actual direct manufacturing labor cost
$150,000
$300,000
$142,000
$276,000
Inventory balances on December 31, 2018, were as follows:
Direct manufacturing labor
cost in ending balance
Accounts
Work in process
Finish goods
Ending Balance
205,000
30,360
256,000
55,200
Cost of goods sold
609,000
190,440
By using the (Write-off Approach) to adjust the under- or overallocated manufacturing overhead amount, what is the ending balance of "Cost of Goods Sold"?
1. O617,000.
2. O613,000.
3. O 620,000.
4. O 633,000.
5. ONone of the above.
Next
OType here to search
Transcribed Image Text:ABC Company produces a line of watches. The company uses a normal costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2018: Budgeted manufacturing overhead cost Budgeted direct manufacturing labor cost Actual manufacturing overhead cost Actual direct manufacturing labor cost $150,000 $300,000 $142,000 $276,000 Inventory balances on December 31, 2018, were as follows: Direct manufacturing labor cost in ending balance Accounts Work in process Finish goods Ending Balance 205,000 30,360 256,000 55,200 Cost of goods sold 609,000 190,440 By using the (Write-off Approach) to adjust the under- or overallocated manufacturing overhead amount, what is the ending balance of "Cost of Goods Sold"? 1. O617,000. 2. O613,000. 3. O 620,000. 4. O 633,000. 5. ONone of the above. Next OType here to search
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