Question

Gest Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $49,000 and at the end of the month was $45,000. The cost of goods manufactured for the month was $226,000. The actual manufacturing overhead cost incurred was $74,000 and the manufacturing overhead cost applied to Work-in-Process was $70,000. The adjusted cost of goods sold that would appear on the income statement for November is?
a) 226,000
b) 230,000
c) 222,000
d) 234,000

Answer 1

Answer: The answer is a $226,000

Step-by-step explanation:

The adjusted cost of good sold Account

$

Balance at beginning 49,000

Add: Cost of goods manufactured 226,000

Add: Applied overhead on work in process 70,000

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345,000

Less: Balance b /d. 45,000

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300,000

Less: Actual manufacturing overhead. 74,000

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Balance on income statements. 226,000

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