Selected accounts of Kosar Manufacturing Company at 123120 y

Selected accounts of Kosar Manufacturing Company at 12/31/20 year end appear below:

What will be the balance in Cost of Goods Sold after Overhead is closed? __________________

Raw Materials Inventory		Work In Process
a) 40,000	d) 25,000		d) 25,000	g) 140,000
			e) 60,000
			f) 90,000
Factory Labor		Finished Goods Inventory
b) 85,000	e) 85,000		g) 140,000	h) 120,000
Manufacturing Overhead		Cost of Goods Sold
c) 75,000	f) 90,000		h) 120,000
e) 25,000

Solution

Underapplied overhead = 75000+25000-90000 = $10000 Balance in Cost of Goods Sold after Overhead is closed = 120000+10000 = $130000