Question

Echher Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $218,000 and credited for $218,500. The ending balance in the Finished Goods inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied by $36,700. The balance in the Finished Goods inventory account at the beginning of the year was:

Answer 1

Answer:

The balance in the Finished Goods inventory account at the beginning of the year was $13,500

Explanation:

The computation of the beginning balance of the finished goods inventory is shown below:

= Ending balance of finished goods inventory + credited finished goods inventory - debited finished goods inventory

=  $13,000 + $218,500 - $218,000

= $13,500

The other information which is given in the question is not relevant. Hence ignored it