Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $39,000 and at the end of the month was $47,000. The cost of goods manufactured for the month was $188,000. The actual manufacturing overhead cost incurred was $71,000 and the manufacturing overhead cost applied to Work in Process was $67,000. The adjusted cost of goods sold that would appear on the income statement for July is:
A)$196,000
B)$184,000
C)$180,000
D)$188,000

Question

Quizplus · Accepted Answer

The adjusted cost of goods sold is calculated as follows:Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory = Adjusted Cost of Goods Sold$39,000 + $188,000 - $47,000 = $180,000