On January 1 Primary Manufacturing had a beginning balance in Work-in-Process Inventory of $81,300 and a beginning balance in Finished Goods Inventory of $22,000.During the year,Primary incurred manufacturing costs of $352,000.
In addition, the following transactions occurred during the year:
Job A-12 was completed for a total cost of $120,000 and was sold for $125,000.
Job A-13 was completed for a total cost of $202,000 and was sold for $214,000.
Job A-15 was completed for a total cost $63,000 but was not sold as of year-end.
The Manufacturing Overhead account had an unadjusted credit balance of $11,000,and was adjusted to zero at year-end.
What was the final balance in the Cost of Goods Sold account?

Question

On January 1 Primary Manufacturing had a beginning balance in Work-in-Process Inventory of $81,300 and a beginning balance in Finished Goods Inventory of $22,000.During the year,Primary incurred manufacturing costs of $352,000. 
In addition, the following transactions occurred during the year:
Job A-12 was completed for a total cost of $120,000 and was sold for $125,000.
Job A-13 was completed for a total cost of $202,000 and was sold for $214,000.
Job A-15 was completed for a total cost $63,000 but was not sold as of year-end.
The Manufacturing Overhead account had an unadjusted credit balance of $11,000,and was adjusted to zero at year-end.
What was the final balance in the Cost of Goods Sold account?

Quizplus · Accepted Answer

The total manufacturing costs incurred during the year were $352,000. The total cost of goods completed during the year was $120,000 + $202,000 + $63,000 = $385,000. The cost of goods sold was $385,000 - $22,000 (beginning balance in Finished Goods Inventory) = $363,000. The Manufacturing Overhead account had an unadjusted credit balance of $11,000, which was adjusted to zero at year-end. This means that $11,000 of manufacturing overhead costs were overapplied during the year. The final balance in the Cost of Goods Sold account is $363,000 - $11,000 = $352,000.

On January 1 Primary Manufacturing Had a Beginning Balance in Work-In-Process