The unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead) for November is closest to:

Question

Quizplus · Accepted Answer

The unadjusted cost of goods sold can be calculated as the sum of the beginning inventory, purchases, and direct labor and overhead costs, minus the ending inventory. Using the information given in the question, we can calculate the unadjusted cost of goods sold for November as follows:

Beginning inventory: $120,000
Purchases: $900,000
Direct labor: $150,000
Overhead: $225,000

Total manufacturing costs: $1,395,000

Less ending inventory: $30,300

Unadjusted cost of goods sold: $1,364,700

Therefore, the closest answer is A) $364,700.

The Unadjusted Cost of Goods Sold (In Other Words, the Cost