Luebke Incorporated has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $52,000 and at the end of the month was $30,000. The cost of goods manufactured for the month was $212,000. The actual manufacturing overhead cost incurred was $55,000 and the manufacturing overhead cost applied to Work in Process was $58,000. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is: $234,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question 11?
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184
artVi
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QUESTION 11
Luebke Incorporated has provided the following data for the month
of November. The balance in the Finished Goods inventory account at
the beginning of the month was $52,000 and at the end of the month
was $30,000. The cost of goods manufactured for the month was
$212,000. The actual manufacturing overhead cost incurred was
$55,000 and the manufacturing overhead cost applied to Work in
Process was $58,000. The company closes out any underapplied or
overapplied manufacturing overhead to cost of goods sold. The
adjusted cost of goods sold that would appear on the income
statement for November is:
$234,000
$231,000
$212,000
$190,000
BERLIN
Transcribed Image Text:CO 184 artVi T...s QUESTION 11 Luebke Incorporated has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $52,000 and at the end of the month was $30,000. The cost of goods manufactured for the month was $212,000. The actual manufacturing overhead cost incurred was $55,000 and the manufacturing overhead cost applied to Work in Process was $58,000. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. The adjusted cost of goods sold that would appear on the income statement for November is: $234,000 $231,000 $212,000 $190,000 BERLIN
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The manufacturing overhead cost is said to be over-applied when actual manufacturing overhead is lower than the applied manufacturing overhead cost. The over-applied overhead cost is deducted from the unadjusted cost of goods sold before posting cost of goods sold to income statement.

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