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Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for May is:

Sagot :

Answer: $219,000

Explanation:

Cost of goods manufactured = Opening work in process + manufacturing cost + closing work in process

Manufacturing cost = Direct labor + direct material + manufacturing overhead

= 90,000 + 60,000 + 64,000

= $214,000

Cost of goods manufactured = 20,000 + 214,000 - 15,000

= $219,000

Manufacturing overhead is $64,000 because only that amount was applied to Work in Process. The rest went to Cost of Goods sold.

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