Question

On January​ 1, Frederic Manufacturing had a beginning balance in WorkminusinminusProcess Inventory of $ 164 comma 000 and a beginning balance in Finished Goods Inventory of $ 25 comma 000. During the​ year, Frederic incurred manufacturing costs of $ 202 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 $ 157 comma 000. Job Cminus63 was completed for a total cost of $ 182 comma 000 and was sold for $ 213 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 $ 24 comma 000 and was adjusted to zero at yearminusend. What was the final balance in the Cost of Goods Sold​ account? A. $ 299 comma 000 debit balance B. $ 347 comma 000 debit balance C. $ 299 comma 000 credit balance D. $ 347 comma 000 credit balance

Answer 1

Answer:The answer is A

Explanation:

Cost of good sold Account

$

Job C minus 62 (Total cost )141,000

Add: Job C minus 63 (Total Cost )182,000

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323,000

Less: Manufacturing overhead. 24,000

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Balance. 299,000

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The cost of good sold is a direct cost, which are easily traced to the product or service

Answer 2

Answer:

A) $299,000

Explanation:

The question is to determine the balance in Cost of Goods sold for Frederic Manufacturing

Cost of Goods sold (COGS):

Job C-62                                                       $141,000

Job C - 63                                                     $182,000

Subtract: Over-allocated Overhead           ($24,000)

The Balance of COGS                               299,000

The Cost of Goods sold represents a direct cost associated with the manufacture of products sold by a company. COGS will usually include the cost of raw materials as well as direct labour that is associated with the production.