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

Janine Maier · Accepted Answer

Final Answer : A, Explanation :  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 = $16,000Cost of goods manufactured = $120,000 + $5,000 – $4,000 = $121,000Ending inventory = $1,000Unadjusted cost of goods sold = $16,000 + $121,000 – $1,000 = $136,000Therefore, the correct answer is A) $136,000.

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