Cienfuegos Corporation has provided the following data concerning last month's operations. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $157,000
B) $154,000
C) $161,000
D) $197,000

Question

Cienfuegos Corporation has provided the following data concerning last month's operations.  The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold. How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $157,000 
B) $154,000 
C) $161,000 
D) $197,000

Quizplus · Accepted Answer

Adjusted cost of goods sold = cost of goods sold + underapplied overhead - overapplied overhead
= $150,000 + $1,000 - $3,000
= $154,000. Therefore, the correct answer is B.

Cienfuegos Corporation Has Provided the Following Data Concerning Last Month's