Manufacturing overhead has an overallocated balance of $7,800; raw materials inventory balance is $62,900; work in process inventory is $34,300; finished goods inventory is $25,600; and cost of goods sold is $135,500. after adjusting for the overallocated manufacturing overhead, what is cost of goods sold? a. $135,500 b. $127,700 c. $143,300 d. $97,200

C. $143,300

Explanation:

The computation of the cost of goods sold is shown below:

= Cost of goods sold + over-allocated balance of manufacturing overhead

= $135,500 + $7,800

= $143,300

To find out the cost of goods sold, we added the cost of goods sold and the over-allocated balance of manufacturing overhead

We ignored the raw material inventory balance, work in process inventory balance, and the finished goods inventory balance as it is not relevant. Hence, we ignored it

(a) when insurance is obtained through a reciprocal insurer, the insureds are sharing the risk of loss with other subscribers of that reciprocal.

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