Boursaw Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $136,000
B) $141,000
C) $144,000
D) $185,000

Question

Boursaw Corporation has provided the following data concerning last month's operations.  Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?
A) $136,000 
B) $141,000 
C) $144,000 
D) $185,000

Quizplus · Accepted Answer

To calculate the unadjusted cost of goods sold, we need to add the beginning inventory to the cost of goods manufactured and then subtract the ending inventory.

Beginning inventory = $16,000 
Cost of goods manufactured = $120,000 + $5,000 – $4,000 = $121,000 
Ending inventory = $1,000

Unadjusted cost of goods sold = $16,000 + $121,000 – $1,000 = $136,000

Therefore, the correct answer is A) $136,000.

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