Cardsheet Company The following partially completed T accounts summarize the transactions of Cardsheet Company for last year:

-The cost of goods sold (after adjusting for under- or overapplied overhead)is

Question

Cardsheet Company The following partially completed T accounts summarize the transactions of Cardsheet Company for last year:

-The cost of goods sold (after adjusting for under- or overapplied overhead)is

Quizplus · Accepted Answer

The cost of goods sold can be calculated by adding up the Debit balances of the Manufacturing Overhead, Work in Process, and Finished Goods T accounts and subtracting the beginning balance of the Finished Goods account. 
$8,000 (Manufacturing Overhead) 
+ $65,800 (Work in Process) 
+ $18,700 (Finished Goods) 
- $30,000 (Beginning Finished Goods) 
= $62,500 
However, there was underapplied overhead of $3,200 (Credit balance in Manufacturing Overhead), making the actual overhead cost $65,700. Therefore, the cost of goods sold is:
$62,500 (actual manufacturing costs) 
+ $3,200 (underapplied overhead) 
= $65,700.
Thus, the answer is D, $66,300.

Cardsheet Company the Following Partially Completed T Accounts Summarize the Transactions