Walston's Designs Produces Custom Portable Spas Walston's Designs Considers the Balance of Manufacturing Overhead to Be

question 36

Multiple Choice

Walston's Designs produces custom portable spas.At the end of its accounting period, the account balances indicated the following: $$\begin{array} { l r } \text { Raw Materials Inventory } & \$ 22,000 \\\text { Work in Process Inventory } & 38,000 \\\text { Finished Goods Inventory } & 62,000 \\\text { Cost of Goods Sold } & 300,000 \\\text { Manufacturing Overhead (credit balance) } & 9,000\end{array}$$ Walston's Designs considers the balance of manufacturing overhead to be material in amount.How much is the adjusted balance of Cost of Goods Sold to be reported by Walston on its income statement?

• A)$300,000
• B)$293,250
• C)$306,750
• D)$294,313

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Definitions:

Market Conditions

Various factors and influences that affect the supply and demand of products and services within a market, including competition, consumer preference, and economic environment.

Changes In Prices

Variations in the cost of goods and services over time due to factors like inflation, supply and demand, or economic policies.

Market System

A financial structure where choices about investment, production, and allocation are determined by market forces of supply and demand.

Market System

The economy operates under a system where investment decisions, production processes, and distribution plans are shaped by the principles of supply and demand, and the open market is where prices for goods and services are freely established.