The Tse Manufacturing Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. The company closes any balance in the Manufacturing Overhead account to Cost of Goods Sold. During the year the company's Finished Goods inventory account was debited for $125,000 and credited for $110,000. The ending balance in the Finished Goods inventory account was $28,000. At the end of the year, manufacturing overhead was overapplied by $4,500.
-The balance in the Finished Goods inventory account at the beginning of the year was:
A) $28,000
B) $13,000
C) $17,500
D) $8,500

Question

Quizplus · Accepted Answer

11ea7761_18f5_b491_81a5_c1807cf82e2f_TB2580_00 $28,000 = Beginning balance finished goods + $125,000 - $110,000
Beginning balance finished goods = $28,000 - ($125,000 - $110,000) = $13,000

The Tse Manufacturing Corporation Uses a Job-Order Costing System and Applies