Using the following information, compute cost of goods manufactured if the company usually experiences an overapplied or underapplied overhead adjustment.

Work-in-process inventory, beginning balance $105,000

Work-in-process inventory, ending balance 125,000

Direct Materials Costs 400,000

Direct Labor Costs 275,000

Actual Manufacturing Overhead 300,500

Applied Manufacturing Overhead 305,000

• $960,000
• $975,500
• $995,500
• $980,000
• $1,000,000
• $955,500

Ending Finished Goods Inventory was less than Beginning Finished Goods Inventory. What would be the most likely cause of this?

• Manufacturing Overhead was overapplied
• Cost of Goods Manufactured was less than Cost of Goods Available for Sale
• None of these
• Total Manufacturing Costs were greater than Cost of Goods Sold
• More units were produced than were sold in the period