Answer:
Adjusted cost of goods sold = = $237,500
Explanation:
Given Opening inventory = $57,000
Cost Of Manufacturing for the month = $214,500
Closing value of inventory = $30,500
Net cost of Goods sold = Opening + Manufactured - Closing
= $57,000 + $214,500 - $30,500 = $241,000
Provided actual manufacturing overhead = $56,500
Applied to Work in process = $60,000
Difference between both of them = $60,000 - $56,500 = $3,500
Over applied cost of goods manufacturing overhead = $3,500
Charged to cost of goods sold
Thus cost of goods sold = $241,000
Adjusted cost of goods sold = Normal - Over applied = $241,000 - $3,500 = $237,500
Over applied manufacturing overhead has already been closed to cost of goods sold, that means that cost is included, now for adjusting such amount the value shall be deducted from cost of goods sold.
Final Answer
Adjusted cost of goods sold = Normal - Over applied = $241,000 - $3,500 = $237,500
