Hubley Inc. uses a job-order costing system in which anyunderapplied or overapplied overhead is closed out to cost of goodssold at the end of the month. The company has provided thefollowing data for August:
|
| Directmaterials | $ | 79,000 |
| Direct labor cost | S | 97,500 |
| Manufacturing overhead costincurred | $ | 64,100 |
| Manufacturing overhead costapplied | $ | 68,250 |
|
| Inventories: | Beginning | Ending |
| Work in process | $15,000 | $17,100 |
| Finished goods | $58,150 | $34,500 |
|
The cost of goods sold that appears on the income statement forAugust and that has been adjusted for any underapplied oroverapplied overhead is closest to:
$262,150
$270,450
$242,650
$266,300
