Manufacturing overhead has an underallocated balance of $16,000; raw materials inventory balance is $150,000; work in process inventory is $130,000; finished goods inventory is $120,000; and cost of goods sold is $180,000.After adjusting for the underallocated manufacturing overhead,what is cost of goods sold?

Question

Quizplus · Accepted Answer

The underallocated overhead of $16,000 should be added to the cost of goods sold, increasing it from $180,000 to $196,000.

Manufacturing Overhead Has an Underallocated Balance of $16,000; Raw Materials