Question

On January​ 1, Frederic Manufacturing had a beginning balance in WorkminusinminusProcess Inventory of $ 161 comma 000 and a beginning balance in Finished Goods Inventory of $ 21 comma 000. During the​ year, Frederic incurred manufacturing costs of $ 204 comma 000. During the​ year, the following transactions​ occurred: Job Cminus62 was completed for a total cost of $ 141 comma 000 and was sold for $ 155 comma 000. Job Cminus63 was completed for a total cost of $ 183 comma 000 and was sold for $ 211 comma 000. Job Cminus64 was completed for a total cost $ 81 comma 000 but was not sold as of yearminusend. The Manufacturing Overhead account had an unadjusted credit balance of $ 25 comma 000 and was adjusted to zero at yearminusend. What was the final balance in the Cost of Goods Sold​ account?

Answer 1

Answer:

Final balance in the cost of goods sold = $299,000

Explanation:

Cost of Goods Sold:  

Job C-62                                                                          $141,000

Job C-63                                                                          $183,000

Adjustment to Manufacturing Overhead account:  

Overhead over allocated to be reduced from COGS   ($25,000)

Balance in Cost of Goods Sold (debit)                        $299,000

( 141,000+183,000-25,000)

Therefore, final balance in the cost of goods sold = $299,000