Cerrone Inc. has provided the following data for the month of July. The balance
ID: 2420490 • Letter: C
Question
Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $50,400 and at the end of the month was $38,400. The cost of goods manufactured for the month was $291,000. The actual manufacturing overhead cost incurred was $165,400 and the manufacturing overhead cost applied to Work in Process was $154,000. The adjusted cost of goods sold that would appear on the income statement for July is:
A. $314,400
B. $303,000
C. $291,600
D. $279,000
Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $50,400 and at the end of the month was $38,400. The cost of goods manufactured for the month was $291,000. The actual manufacturing overhead cost incurred was $165,400 and the manufacturing overhead cost applied to Work in Process was $154,000. The adjusted cost of goods sold that would appear on the income statement for July is:
A. $314,400
B. $303,000
C. $291,600
D. $279,000
Explanation / Answer
Cost of goods sold cost of goods manufactured 291000 Add:opening finished goods 50400 Less:closing finished goods -38400 Cost of goods sold 303000 Add:underapplied (165400-154000) 11400 Adjusted COGS 314400 So option a is correct