Reference: 03-11 the Tse Manufacturing Company Uses a Job-Order Costing System and System

Multiple Choice

Reference: 03-11
The Tse Manufacturing Company uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. The company closes 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 $125,000 and credited for $110,000. The ending balance in the Finished Goods inventory account was $28,000. At the end of the year, manufacturing overhead was overapplied by $4,500.
-The balance in the Finished Goods inventory account at the beginning of the year was:

A) $8,500.
B) $28,000.
C) $17,500.
D) $13,000.