Explore BrainMass

Explore BrainMass

    Cost of goods sold for Lietz Corporation

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Lietz Corporation has provided the following data concerning manufacturing overhead for January:

    Actual Manufacturing overhead incurred 52,000
    Manufacturing overhead applied to Work in Process 75,000

    The company's Cost of Goods Sold was $369,000 prior to closing out its Manufacturing overhead account. The company closes out its manufacturing overhead account to Cost of Goods Sold. Which of the following statements are true.

    ~Manufacturing overhead was underapplied by $23,000; cost of goods sold after closing out the manufacturing overhead account is $392,000
    ~Manufacturing overhead was underapplied by 23,000; cost of goods sold after closing out the manufacturing overhead account is $346,000
    ~Manufacturing overhead was overapplied by 23,000; cost of goods sold after closing out the manufacturing overhead account is $346,000
    ~Manufacturing overhead was overapplied by $23,000; cost of goods sold after closing out the manufacturing overhead account is $392,000.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:29 am ad1c9bdddf
    https://brainmass.com/business/accounting/cost-of-goods-sold-for-lietz-corporation-460438

    Solution Preview

    Cost of goods sold

    Lietz Corporation has provided the following data concerning manufacturing overhead for January:

    Actual Manufacturing overhead incurred 52,000
    Manufacturing overhead applied to Work in Process 75,000

    The company's Cost of Goods ...

    Solution Summary

    Cost of goods sold for Lietz Corporation

    $2.19

    ADVERTISEMENT