Stangl Incorporated Has Provided the Following Data for the Month

question 86

Essay

Stangl Incorporated has provided the following data for the month of September. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
Manufacturing overhead for the month was underapplied by $3,000.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.Required:Determine the cost of work in process, finished goods, and cost of goods sold AFTER allocation of the underapplied or overapplied overhead for the period.

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Definitions:

First Processing Department

The initial stage or department in a manufacturing process where raw materials begin to be transformed into finished products.

Conversion Costs

Costs incurred to convert raw materials into finished goods, typically including direct labor and manufacturing overhead.

Equivalent Units

A concept in cost accounting used to approximate the amount of finished goods produced from partially completed goods.

First Processing Department

The initial stage or section in a manufacturing or processing facility where raw materials begin their transformation into finished products.