Manufacturing overhead has an underallocated balance of $12,400; raw materials inventory balance is $145,500; work in process inventory is $122,800; finished goods inventory is $140,300; and cost of goods sold is $170,500. After adjusting for the underallocated manufacturing overhead, what is cost of goods sold?

Question

Quizplus · Accepted Answer

The underallocated manufacturing overhead of $12,400 needs to be added to the cost of goods sold to properly allocate the overhead. Therefore, the adjusted cost of goods sold is $170,500 + $12,400 = $182,900.

Manufacturing Overhead Has an Underallocated Balance of $12,400; Raw Materials