Maple Mount Fishery Is a Canning Company in Astoria $\text { The January } 1 \text { balances of inventory accounts are shown below. }$

question 25

Multiple Choice

Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,400, and management budgeted $324,000 of direct labor costs. During the year, the company incurred the following actual costs. $\begin{array}{lr}\text { Direct materials used } & \$ 384,000 \\\text { Direct labor } & 306,000 \\\text { Factory overhead } & 658,000\end{array}$
$\text { The January } 1 \text { balances of inventory accounts are shown below. }$
$\begin{array}{lr}\text { Materials-all direct } & \$ 70,000 \\\text { Work-in-process } & 41,000 \\\text { Finished goods } & 26,000\end{array}$ The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year.
The adjusted cost of goods sold, after under or overapplied overhead, is: (Round your "predetermined overhead rate" to 1 decimal place.)

• A)$1,332,600.
• B)$1,354,700.
• C)$1,357,600.
• D)$1,373,600.
• E)$1,339,300.

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