Using the following information, compute cost of goods sold. Make sure to consider all necessary adjustments. Any over-or under-applied manufacturing overhead is closed and adjusted to cost of goods sold.
Finished goods inventory, beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . $125,000
Finished goods inventory, ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,500
Cost of goods manufactured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000
Actual manufacturing overhead costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165,000
Applied manufacturing overhead costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225,500
Note: The $400,000 amount of cost of goods manufactured includes the $225,500 in applied manufacturing overhead.