Cerrone Inc. has provided the following data for the month of July. The balance in the...

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Accounting

Cerrone Inc. has provided the following data for the month ofJuly. The balance in the Finished Goods inventory account at thebeginning of the month was $51,500 and at the end of the month was$47,250. The cost of goods manufactured for the month was $237,300.The actual manufacturing overhead cost incurred was $77,700 and themanufacturing overhead cost applied to jobs was $73,500. Theadjusted cost of goods sold that would appear on the incomestatement for July is:
$237,300 $241,500 $233,100 $245,750

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3.9 Ratings (409 Votes)

The answer is $ 245,750

Calculation of Under/ Overapplied Overhead

Actual manufacturing overhead cost incurred	$ 77,700
Manufacturing overhead cost applied	$ 73,500
Under Applied Overhead Cost	$ 4,200

Schedule of Cost of Goods Sold
Finished goods inventory, beginning	$ 51,500
Add: Cost of goods manufactured	$ 237,300
Cost of goods available for sale	$ 288,800
Deduct: Finished goods inventory, ending	$ 47,250
Unadjusted cost of goods sold	$ 241,550
Add: Underapplied overhead	$ 4,200
Adjusted cost of goods sold	$ 245,750

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