Stangl Inc has provided the following data for the month of

Stangl Inc. has provided the following data for the month of September. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

Manufacturing overhead for the month was underapplied by $3,900.

The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

Required:

Determine the cost of work in process, finished goods, and cost of goods sold AFTER allocation of the underapplied or overapplied overhead for the period.

	Work In Process	Finished Goods	Cost of Goods Sold	Total
Direct materials	$	1,570		$	7,500		$	14,520		$	23,590
Direct labor		5,370			17,760			34,500			57,630
Manufacturing overhead applied		4,004			9,240			17,556			30,800
Total	$	10,944		$	34,500		$	66,576		$	112,020

Solution

Work in Process Finished Goods Cost of Goods Sold Total Total 10944 34500 66576 112020 Allocation of underapplied overhead 507 1170 2223 3900 (3900 x 4004/30800) (3900 x 9240/30800) (3900 x 17556/30800) Total after allocation of underapplied overheads $ 11451 35670 68799 115920