Ask Question
10 June, 08:06

Manufacturing overhead has an overallocated balance of $7, 500; raw materials inventory balance is $62.000, work in process inventory is $34,000; finished goods inventory is $25,000; and cost of goods sold is $ 135.000 After adjusting for the overallocated manufacturing overhead, what is cost of goods sold?

a. $135,000

b. $142, 500

c. $7, 500

d. $127, 500

+4
Answers (1)
  1. 10 June, 10:36
    0
    Option (b) is correct.

    Explanation:

    Manufacturing overhead has an overallocated balance = $7,500

    Cost of goods sold = $135,000

    The overallocated manufacturing overhead will be simply added to the cost of goods sold.

    After adjusting for the overallocated manufacturing overhead,

    Cost of goods sold:

    = cost of goods sold + overallocated balance of manufacturing overhead

    = $135,000 + $7,500

    = $142,500
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Manufacturing overhead has an overallocated balance of $7, 500; raw materials inventory balance is $62.000, work in process inventory is ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers