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Problem 1: Manufacturing overhead has an overallocated balance of $5,250; raw materials inventory balance is $65,900; work in process inventory is $32,000; finished goods inventory is $29,600; and cost of goods sold is $132,900. After adjusting for the overallocated manufacturing overhead, what is cost of goods sold?
1- $132,900
2- $138,150
3- $97,900
4- $127,650
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