Question

Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $39,000 and at the end of the month was $47,000. The cost of goods manufactured for the month was $188,000. The actual manufacturing overhead cost incurred was $71,000 and the manufacturing overhead cost applied to jobs was $67,000. The adjusted cost of goods sold that would appear on the income statement for July is:

Answer 1

Answer:

$184,000

Explanation:

The computation of adjusted cost of goods sold is shown below:-

For computing the adjusted cost of goods sold first we need to find out the cost of goods sold which is here below:-

Cost of goods sold = Beginning inventory of finished goods + Cost of goods manufactured - Ending inventory of finished goods

= $39,000 + $188,000 - $47,000

= $180,000

Adjusted cost of goods sold = Cost of goods sold + Manufacturing overhead cost incurred - Manufacturing overhead cost applied

= $180,000 + $71,000 - $67,00

= $184,000