3. Cost of Goods Sold... 20,000
Manufacturing Overhead... 20,000
Schedule of cost of goods sold:
Finished goods inventory, Jan. 1... $ 75,000
Add: Cost of goods manufactured... 890,000
Goods available for sale ... 965,000
Deduct: Finished goods inventory, Dec. 31 .. 35,000
Unadjusted cost of goods sold... 930,000
Add underapplied overhead... 20,000
Adjusted cost of goods sold... $950,000
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Solutions Manual, Chapter 3 131
Problem 3-32 (continued)
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