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17 April, 19:47

Manufacturing overhead has an overallocated balance of $7, 500; raw materials inventory balance is $62.000, work in process inventory is $34,000; finished goods inventory is $25,000; and cost of goods sold is $ 135.000 After adjusting for the overallocated manufacturing overhead, what is cost of goods sold?

a. $135,000

b. $142, 500

c. $7, 500

d. $127, 500

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Answers (1)
  1. 17 April, 19:59
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    Option (b) is correct.

    Explanation:

    Manufacturing overhead has an overallocated balance = $7,500

    Cost of goods sold = $135,000

    The overallocated manufacturing overhead will be simply added to the cost of goods sold.

    After adjusting for the overallocated manufacturing overhead,

    Cost of goods sold:

    = cost of goods sold + overallocated balance of manufacturing overhead

    = $135,000 + $7,500

    = $142,500
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