Manufacturing overhead has an overallocated balance of $5,000; raw materials inventory balance is $55,000; work in process inventory is $32,000; finished goods inventory is $27,000; and cost of goods sold is $120,000.After adjusting for the overallocated manufacturing overhead,what is cost of goods sold?

Question

Quizplus · Accepted Answer

Since manufacturing overhead was overallocated by $5,000, we need to subtract that amount from the total cost of goods sold. Therefore, the adjusted cost of goods sold is $120,000 - $5,000 = $115,000. So, the best choice is C.

Manufacturing Overhead Has an Overallocated Balance of $5,000; Raw Materials