Burkhammer Inc Manufacturing Overhead for the Month Was Underapplied by $9,000

question 28

Essay

Burkhammer Inc.has provided the following data for the month of August.There were no beginning inventories;consequently,the direct materials,direct labor,and manufacturing overhead applied listed below are all for the current month. $\begin{array}{lrrrr}&\text {Work In}&\text { Finished }&\text {Cost of }\\&\text {Process}&\text { Goods}&\text { Goods Sold}&\text { Total}\\\text {Direct materials.............}&\$ 2,260 & \$ 12,180 & \$ 81,480 & \$ 95,920 \\\text {Direct labor...................}&1,900& 14,500& 97,000&113,400 \\\text {Manufacturing overhead}&\\\text { applied..........................}&\underline{1,590} & \underline{6,890}& \underline{44,520} & \underline{53,000} \\\text {Total.............................}&\underline{ \$5,750} & \underline{ \$ 33,750} & \underline{ \$ 223,000} & \underline{\$ 262,320}\end{array}$ Manufacturing overhead for the month was underapplied by $9,000.
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:

Vicarious Learning

The process of learning behaviors or forming attitudes based on observing the actions of others and the consequences of those actions.

Classical Conditioning

A learning process that pairs a neutral stimulus with an unconditioned stimulus to elicit a conditioned response.

Skinner Box

A laboratory apparatus used to study animal behavior through controlled conditioning experiments, named after B.F. Skinner.

Operant Conditioning

A type of learning where behavior is controlled through consequences, including reinforcements or punishments, to increase or decrease the occurrence of behaviors.