Problem:
Gest Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $49,000 and at the end of the month was $45,000. The cost of goods manufactured for the month was $226,000. The actual manufacturing overhead cost incurred was $74,000 and the manufacturing overhead cost applied to Work in Process was $70,000.
Required:
Question: The adjusted cost of goods sold that would appear on the income statement for November is:
- $222,000
- $234,000
- $230,000
- $226,000
Note: Please show the work not just the answer.