Buth Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month. During May, the cost of goods manufactured was $196,000 and manufacturing overhead was overapplied by $2,800. The beginning finished goods inventory was $45,000 and the ending finished goods inventory was $78,000.

The cost of goods sold that appears on the income statement for May and that has been adjusted for any underapplied or overapplied overhead is closest to:

$160,200

$163,800

$196,000

$226,200