Wandrie Inc Manufacturing Overhead for the Month Was Overapplied by $3,000

question 18

Multiple Choice

Wandrie Inc.has provided the following data for the month of October.There were no beginning inventories;consequently,the direct materials,direct labor,and manufacturing overhead applied listed below are all for the current month. $\begin{array}{lrrrr}&\text {Work In}&\text { Finished }&\text {Cost of }\\&\text {Process}&\text { Goods}&\text { Goods Sold}&\text { Total}\\\text {Direct materials.............}&\$ 6,320 & \$ 15,860 & \$ 80,080 & \$ 102,260 \\\text {Direct labor...................}&5,450 & 15,250 & 77,000 & 97,700 \\\text {Manufacturing overhead}&\\\text { applied..........................}&\underline{5,840} & \underline{10,950}& \underline{56,210} & \underline{73,000} \\\text {Total.............................}&\underline{ \$ 17,610} & \underline{ \$ 42,060} & \underline{ \$ 213,290} & \underline{\$ 272,960}\end{array}$
Manufacturing overhead for the month was overapplied 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.
The cost of goods sold for October after allocation of any underapplied or overapplied overhead for the month is closest to:

• A)$215,600
• B)$210,980
• C)$210,290
• D)$216,290

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Definitions:

Backlash

The gapping or play between mating gear teeth usually measured with thickness gauges or a dial indicator.

Fatigue-Type Failures

Failures in materials or components that occur due to repetitive stress or strain over time, leading to cracks or breaks.

Gear Components

The individual parts that make up a gear system, including gears, shafts, bearings, and others, which transmit power and motion.

Spalled Tooth Surfaces

A condition where the surface of gear teeth becomes pitted or flaked off, usually due to fatigue, excessive loading, or material defects.