Lomax Co. has provided the following data for the month of October: 1.The balance in the Finished Goods inventory account at the beginning of the month was $72,000, and at the end of the month was $38,500. 2.The cost of goods manufactured for the month was $240,000. 3. The actual manufacturing overhead cost incurred was $61,000, and the manufacturing overhead applied to Work in Process was $66,800. 4.The company closes out any underapplied or overapplied manufacturing overhead to the cost of goods sold. Required: What is the adjusted cost of goods sold that would appear on the income statement for October?

Lomax Co. has provided the following data for the month of October: 1.The balance in the Finished Goods inventory account at the beginning of the month was $72,000, and at the end of the month was $38,500. 2.The cost of goods manufactured for the month was $240,000. 3. The actual manufacturing overhead cost incurred was $61,000, and the manufacturing overhead applied to Work in Process was $66,800. 4.The company closes out any underapplied or overapplied manufacturing overhead to the cost of goods sold. Required: What is the adjusted cost of goods sold that would appear on the income statement for October?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...

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