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Aerobars Inc. uses a job-order costing in which any under applied or over applied overhead is closed out to cost of goods sold at the end of the month. The company's cost of goods manufactured for March was $167,000; its beginning finished goods inventory was $33,000; its ending finished goods inventory was $28,000; its manufacturing overhead was over applied by $4,000.
Determine the cost of goods sold that would appear on the income statement for March; in other words, determine the cost of goods sold after adjustment for any underapplied or overapplied overhead. Show your work!
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