Answer:
Cost of goods sold is $9,620
Explanation:
<em>First step prepare the Cost of Goods Manufactured Account</em>
Direct materials $ 9,100
Direct labor $ 2,800
Manufacturing overhead applied $ 4,800
Total Manufacturing Costs $16,700
Add Opening Work In Process $ 5,800
Less Closing Work In Process $ 0
Cost of Goods Manufactured $22,500
<em>Next we need to calculate the cost of goods sold as follows :</em>
Opening Finished Goods Inventory $0
Add Cost of Goods Manufactured $22,500
Less Closing Finished Goods Inventory ($12,500)
Cost of goods sold $10,000
Less Over-applied Overheads ($380)
Adjusted Cost of goods sold $9,620
Finished Goods Inventory = $22,500 × 100/180
= $12,500
Thus Cost of goods sold is $9,620
