Before prorating the manufacturing overhead costs at the end of 2016, the Cost of Goods Sold and Finished Goods Inventory had applied overhead costs of $58,700 and $32,000 in them, respectively. There was no Work-in-Process at the beginning or end of 2016. During the year, manufacturing overhead costs of $86,000 were actually incurred. The balance in the Applied Manufacturing Overhead was $90,700 at the end of 2016. If the under- or overapplied overhead is prorated between Cost of Goods Sold and the inventory accounts, how much will be the Cost of Goods Sold after the proration?

Multiple Choice

• $57,042.

• $59,617.

• $60,358.

• $55,658.