Basis of the overhead applied during the month


Sanker Inc. has provided the following data for the month of August. There were no beginning inventories, consequently, the direct materials direct labor, and manufacturing overheas applied listed below are all for the current month..
Work In Finished Cost of Total
Process Goods Goods Sold

Direct materials $2,790 $7,680 $18,240 $28,718
Direct labor 9,700 19,200 45,600 74,500
Manufacturing 5,440 8,000 18,560 32,000
overhead applied
Total $17,930 $34,880 $82,400 $135,210

Manufacturing overhead for the month was overapplied by $5,000. The company allocates any underapplied or overapplied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

The work-in process inventory at the end of the August after allocation of any underapplied or overapplied overhead for the month is closest to
A. $17,267
B. $18,593
C. $18,780
D. $17,080

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Accounting Basics: Basis of the overhead applied during the month
Reference No:- TGS0712985

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