Lavender Corporation uses a job order costing system and applies manufacturing overhead using a predetermined overhead rate based on direct labor hours. The following data are available for August:

Raw Materials (all direct materials): Beginning: $28,000 Ending: $32,000

Work In Process: Beginning: $600 Ending: $15,000

Finished Goods: Beginning: $35,000 Ending: $23,000

Actual Costs for August:

Raw Materials Purchase: 51,000

Direct Labor Salaries Paid: $90,000

Direct Labor Pay Rate per Hour: $15

Manufacturing Overhead: $49,000

Info from Budget: Manufacturing Overhead Budgeted Per Month: $60,000

Direct Labor Hours Budgeted Per Month: 7,500

Question 2) For the same company above, but contrary to the fact, assume that cost of goods manufactured for August is $200,000. The adjusted Cost of Goods Sold (adjusting for over or under applied amount all closed out to cost of goods sold) that appears on the income statement is?

A) 213,000 B) 223,000 C) 212,000 D) 211,000 E) None of above