Question 7 (of 12)> Save & Exit | Submit Time remaining: 0:43:15 7. Buth Inc. us

Question

Question 7 (of 12)> Save & Exit | Submit Time remaining: 0:43:15 7. Buth Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. During May, the cost of goods manufactured was $166,000 and manufacturing overhead was overapplied by $1,800. The beginning finished goods inventory was $35,000 and the ending finished goods inventory was $58,000. The cost of goods sold that appeers on the income statement for May cid that has been adjusted for any underapplied or overapplied overhead is closest to: O $141,200 O $142,800 O $166,000 O $187,200

Explanation / Answer

Beginning Of Finished Goods Inventory $35000

Add: Cost of Goods Manufactured                                                           $166000

Available Goods for Sale $201000

Less: Closing Finished Goods Inventory                                                                        $58000

Unadjusted Cost of Goods Sold                                                                                   $143000

Less: Over applied Manufacturing Overhead                                                             $ 1800

Adjusted Cost Of Goods Sold                                                                                         $141200

So correct option is Option A

141200

Pl give me a thumbs-up

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