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Keowee Enterprises began the year with $165,700 of finished goods inventory. During the year the company manufactured goods costing $689,200. At the end of the year, $194,100 of finished goods remained in inventory. Actual manufacturing overhead was $235,800, estimated manufacturing overhead was $230,000, and manufacturing overhead applied totaled $221,500.
-The cost of goods available for sale was:
A)$660,800
B)$717,600
C)$854,900
D)$883,300

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Quizplus · Accepted Answer

The cost of goods available for sale is calculated as the beginning finished goods inventory plus the cost of goods manufactured during the year. The cost of goods manufactured includes the actual manufacturing costs (direct materials, direct labor, and manufacturing overhead applied). Given that the beginning finished goods inventory is $165,700, the cost of goods manufactured is $689,200, and manufacturing overhead applied does not directly affect this calculation as it's part of the manufacturing costs, the cost of goods available for sale is $165,700 (beginning inventory) + $689,200 (cost of goods manufactured) = $854,900.

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