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Cost of goods sold

Part 4: Apex Corporation

The records of Apex Corporation revealed the following data for the current year.

Work in Process $ 73,150
Finished Goods 115,000
Cost of Goods Sold 133,650
Direct Labor 111,600
Direct Material 84,200

a. Assume, for this question only, actual overhead is $98,700 and applied overhead is $93,250. Manufacturing overhead is:

b. Assume that Apex has under applied overhead of $37,200 and that this amount is material. What journal entry is needed to close the overhead account? (Round decimals to nearest whole percent.)

c. Assume that Apex has under applied overhead of $10,000 and that this amount is immaterial. What is the balance in Cost of Goods Sold after the under applied overhead is closed?

d. Assume that Apex has over applied overhead of $25,000 and that this amount is material. What is the balance in Cost of Goods Sold after the over applied overhead is closed?

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Solution Preview

Part 4: Apex Corporation

The records of Apex Corporation revealed the following data for the current year.

Work in Process $ 73,150
Finished Goods 115,000
Cost of Goods Sold 133,650
Direct Labor 111,600
Direct Material 84,200

a. Assume, for this question only, actual overhead is $98,700 and applied overhead is $93,250. Manufacturing overhead is:

The actual overhead is higher and so the manufacturing overhead is under-applied and the amount is 98,700-93,250=$5,450.

b. Assume that Apex has under applied overhead of $37,200 and ...

Solution Summary

The solution explains how to calculate the value of cost of goods sold given that there is either under of over applied overhead

$2.19