Use the information below to answer the two questions that follow. A company applies manufacturing overhead to jobs usin
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Use the information below to answer the two questions that follow. A company applies manufacturing overhead to jobs usin
questions that follow. A company applies manufacturing overhead to jobs using a predetermined overhead rate of 75% of direct labor cost. During January the company recorded the following: Purchased Used Raw Materials (all direct) $38,000 Hours Direct Labor (actual) 1.865 Cost $32,000 Actual MOH incurred $27,500 Selected inventory balances for the period were: Raw Materials Work in Process Finished Goods Jani $4,500 6,500 38,000 Jan 31 $2.800 8,200 32.000 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 $
Use the information below to answer the two