Answer Happy

Use the information below to answer the two questions that follow, A company applies manufacturing overhead to jobs using a predetermined overhead rate of 50% of direct labor cost. During January the company recorded the following: Raw Materials (all direct) Purchased $38,000 Used Direct Labor (actual) Hours 1865 Cost $36.000 Actual MOH incurred $19,300 Selected Inventory balances for the period were: Jan 1 Raw Materials Work In Process Finished Goods $4,500 6,500 38.000 Janei $11,000 8,200 30 000 Q. January unadjusted Cost of Goods Sold would be ANS $ Q. If company has a policy to close any under or over-applied overhead costs to cost of goods sold at the end of the year, what would be the impact of this adjustment on the company's net operating income? ANS. (Click to select) by $