Walston's Designs produces custom portable spas. At the end of its accounting period, the account balances indicated the following: $$\begin{array} { l r }
\text { Raw Materials Inventory } & \$ 22,000 \
\text { Work in Process Inventory } & 38,000 \
\text { Finished Goods Inventory } & 62,000 \
\text { Cost of Goods Sold } & 300,000 \
\text { Manufacturing Overhead (credit balance) } & 9,000
\end{array}$$ Walston's Designs considers the balance of manufacturing overhead to be material in amount. How much is the adjusted balance of Cost of Goods Sold to be reported by Walston on its income statement?

Question

Walston's Designs produces custom portable spas. At the end of its accounting period, the account balances indicated the following: $$\begin{array} { l r } 
\text { Raw Materials Inventory } & \$ 22,000 \
\text { Work in Process Inventory } & 38,000 \
\text { Finished Goods Inventory } & 62,000 \
\text { Cost of Goods Sold } & 300,000 \
\text { Manufacturing Overhead (credit balance) } & 9,000
\end{array}$$ Walston's Designs considers the balance of manufacturing overhead to be material in amount. How much is the adjusted balance of Cost of Goods Sold to be reported by Walston on its income statement?

Quizplus · Accepted Answer

The Answer of Walston's Designs produces custom portable spas. At the end of its accounting period, the account balances indicated the following: $$\begin{array} { l r } 
\text { Raw Materials Inventory } & \$ 22,000 \
\text { Work in Process Inventory } & 38,000 \
\text { Finished Goods Inventory } & 62,000 \
\text { Cost of Goods Sold } & 300,000 \
\text { Manufacturing Overhead (credit balance) } & 9,000
\end{array}$$ Walston's Designs considers the balance of manufacturing overhead to be material in amount. How much is the adjusted balance of Cost of Goods Sold to be reported by Walston on its income statement?

Walston's Designs Produces Custom Portable Spas Walston's Designs Considers the Balance of Manufacturing Overhead to Be