During the year ended May 31, 2018, Teller Register Co. reported favorable raw material usage and direct labor and variable overhead efficiency variances that totaled $288,600. Price and rate variances were negligible. The total standard cost of goods manufactured during the year was $1,950,000.

1. Assume that the ending inventory of finished goods valued at standard cost is $163,000. Calculate the adjustment to finished goods inventory that would be appropriate because of the erroneous standards.

Adjustment to finished goods inventory