The Sky Manufacturing Company uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. The company closes out any balance in the Manufacturing Overhead account to Cost of Goods Sold. During the year the company's Finished Goods inventory account was debited for $130,000 and credited for $110,000. The ending balance in the Finished Goods inventory account was $30,000. At the end of the year, manufacturing overhead was overapplied by $4,500.

What was the balance in the Finished Goods inventory account at the beginning of the year?

Multiple Choice

1) $10,000

2) $8,500

3) $28,000

4) $17,500