The Tse Manufacturing Company uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. The company closes out any balance in the Manufacturing Overhead account to Cost of Goods Sold. During the year the company's Finished Goods inventory account was debited for $125,000 and credited for $110,000. The ending balance in the Finished Goods inventory account was $28,000. At the end of the year, manufacturing overhead was overapplied by $4,500.
-What was the balance in the Finished Goods inventory account at the beginning of the year?

Question

Quizplus · Accepted Answer

The balance in the Finished Goods inventory account at the beginning of the year can be found by looking at the beginning balance in the table provided in the question. The beginning balance for Finished Goods inventory is $13,000.

The Tse Manufacturing Company Uses a Job-Order Costing System and Applies