On January 1,Frederic Manufacturing had a beginning balance in Work-in-Process Inventory of $163,000 and a beginning balance in Finished Goods Inventory of $23,000.During the year,Frederic incurred manufacturing costs of $200,000. During the year,the following transactions occurred:
Job C-62 was completed for a total cost of $144,000 and was sold for $155,000.
Job C-63 was completed for a total cost of $184,000 and was sold for $212,000.
Job C-64 was completed for a total cost $81,000 but was not sold as of year-end.
The Manufacturing Overhead account had an unadjusted credit balance of $24,000 and was adjusted to zero at year-end.
What was the final balance in the Cost of Goods Sold account?

Question

Quizplus · Accepted Answer

The Cost of Goods Sold includes the cost of jobs that were completed and sold. Job C-62 and Job C-63 were sold, totaling $144,000 + $184,000 = $328,000. However, the Manufacturing Overhead account was adjusted to zero, indicating an over-applied overhead of $24,000, which reduces the Cost of Goods Sold to $328,000 - $24,000 = $304,000.

On January 1,Frederic Manufacturing Had a Beginning Balance in Work-In-Process