The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company. Work in process inventory $0 Raw materials inventory $28,000 Finished goods inventory $40,000 Additional data: 1) actual manufacturing overhead for January amounted to $62000 2) Total direct labor cost for januray was $63,000 3) The predetermined manufacturing overhead rate is based on direct cost. The budget for the year called for $250,000 of direct labor cost and $350,000of manufacturing overhead costs.4) The only job unfinished on January 31 was Job. 151 for which total direct labor charges were $5,200( 800 direct labor hours) and total direct material charges were $14,000 5) Cost of direct materials placed in production during January totaled $123,000. There were no indirect material requisitions during January. 6) January 31 balance in raw materials inventory was $35,000 7) Finished goods inventory balance on January 31 was $34,500
1.What is the cost of goods sold for January?
A. $314,200
B. $236,500
C. $253,220
D. $213,586
2. Has manufacturing overhead been overallocated or underallocated and by what amount as of January 31?
A. $17,000 underallocated
B. $17,000 overallocated
C. $26,200 underallocated
D $26,200 overallocated