Cerrone Inc. has provided the following data for the month of July. The balance
ID: 2421770 • 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 $54,700 and at the end of the month was $47,000. The cost of goods manufactured for the month was $289,000. The actual manufacturing overhead cost incurred was $83,300 and the manufacturing overhead cost applied to Work in Process was $77,000. The adjusted cost of goods sold that would appear on the income statement for July is: $281,300 $303,000 $296,700 $290,400
Explanation / Answer
Adjusted Cost of goods sold = Opening Finished goods + Cost og goods sold - Closing finished goods
= 54700 + 28900 - 47000
= $296700
Thus answer will be $296700