Boursaw Corporation has provided the following data concerning last month’s oper

Question

Boursaw Corporation has provided the following data concerning last month’s operations.

Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.

How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold?

$141,000

$185,000

$144,000

$136,000

Purchases of raw materials $ 33,000 Indirect materials included in manufacturing overhead $ 4,000 Direct labor cost $ 58,000 Manufacturing overhead applied to Work in Process $ 78,000 Underapplied overhead $ 5,000

Explanation / Answer

Calculate cost of goods available for sale :

Direct material used = (10000+33000-15000-4000) = 24000

Manufacturing cost = (24000+58000+78000) = 160000

Cost of goods manufactured = (56000+160000-72000) = 144000

Cost of goods available for sale = (41000+144000) = $185000

so answer is b) $185000

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