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Bega Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. The company's cost of goods manufactured for October was $203,000 and its beginning and ending inventories were:Inventories: Beg End
Work in process 22000 19000
Finished goods 35000 51000
During the month, the manufacturing overhead cost incurred was $63,000 and the manufacturing overhead cost applied was $61,000.The cost of goods sold that appears on the income statement for October and that has been adjusted for any underapplied or overapplied overhead is closest to:
A. $203,000
B. $189,000
C. $219,000
D. $185,000
Financial Statement Analysis and Preparation
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