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lina2011
24 days ago
5

Echher Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the

year the company's Finished Goods inventory account was debited for $218,000 and credited for $218,500. The ending balance in the Finished Goods inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied by $36,700.
If the applied manufacturing overhead was $223,900, the actual manufacturing overhead cost for the year was:

$200,700

$260,600

$200,200

$187,200
Business
1 answer:
Mariulka [3.1K]24 days ago
3 0

Answer:

$187,200

Explanation:

In this scenario:

The company's Finished Goods inventory was Debited = $218,000

The company's Finished Goods inventory was Credited = $218,000

The ending balance in the Finished Goods inventory equals $13,000

Manufacturing overhead was overapplied by $36,700.

Applied manufacturing overhead stands at $223,900

The actual manufacturing overhead expense for the year is:

= Applied manufacturing overhead - Overapplied manufacturing overhead

= $223,900 - $36,700

= $187,200

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