Cerrone Inc. has provided the following data for the month of July. The balance in the Finished Goods inventory account at the beginning of the month was $54,000 and at the end of the month was $49,500. The cost of goods manufactured for the month was $248,600. The actual manufacturing overhead cost incurred was $81,400 and the manufacturing overhead cost applied to jobs was $77,000. The adjusted cost of goods sold that would appear on the income statement for July is:
a. $283,600
b. $264,400
c. $277,800
d. $289,400

The correct answer is $257,500(not one of the multiple choices)

Explanation:

The costs of good sold =opening inventory+costs of goods manufactured-closing inventory

opening inventory is worth is $54,000

costs of goods manufactured is $248,600

closing inventory is n $49,500

costs of goods sold=$54,000+$248,600-$49,500=$ 253,100.00  

However overhead was under-applied by $4400  ($81400-$77,000) which must be added to costs of goods sold ,hence the corrected costs of goods sold is $257,500($253,100+$4,400)

This is not one of the options

when consumers have more money to pay for a product, the most likely situation to occur from the possible options on the list is (2) an increase in price for computer and computer accessories will happen.

companies tend to price products according to production costs, but they also take into account how much money would a consumer in certain segments be willing to pay for their product. if they have more money, the products would definitely be priced higher.