Asked by Angel Medrano on Jun 10, 2024
Verified
Gurtner Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $203,000
B) $163,000
C) $170,000
D) $167,000
Unadjusted Cost of Goods Sold
The initial calculation of the cost of goods sold that has not been modified for returns, allowances, or discounts.
Overapplied Manufacturing Overhead
A scenario where the allocated manufacturing overhead costs exceed the actual overhead costs incurred, resulting in a credit balance.
- Measure the cost associated with the creation of goods.
Verified Answer
BB
Bubblie BlondieJun 14, 2024
Final Answer :
B
Explanation :
The unadjusted cost of goods sold is calculated by adding the beginning inventory to the cost of goods manufactured and subtracting the ending inventory. Using the provided data, the calculation is: $18,000 + $160,000 - $15,000 = $163,000.
Learning Objectives
- Measure the cost associated with the creation of goods.
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