The cost of goods sold (after adjustment for underapplied or overapplied manufacturing overhead) is:

A) $58,000
B) $69,000
C) $72,000
D) $65,000

Question

The cost of goods sold (after adjustment for underapplied or overapplied manufacturing overhead) is:A) $58,000B) $69,000C) $72,000D) $65,000

Aaron Bhaskar · Accepted Answer

Final Answer : C, Explanation :  The cost of goods sold (COGS) can be calculated by adding the beginning inventory, purchases during the period, and any additional costs incurred to produce goods (such as direct labor and manufacturing overhead) and then subtracting the ending inventory. From the given options, the only answer that arrives at the COGS of $72,000 is option C. The unadjusted cost of goods sold is the credit entry to Finished Goods which can be determined as follows:   15,000 = 18,000 + 62,000 - XX = 18,000 + 62,000 - 15,000 = 65,000     The balance in Manufacturing Overhead is close to Cost of Goods Sold.

The cost of goods sold (after adjustment for underapplied or overapplied manufacturing overhead) is:

A) $58,000
B) $69,000
C) $72,000
D) $65,000

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