Echher Corporation Uses a Job-Order Costing System and Applies Overhead

Multiple Choice

Echher Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $218,000 and credited for $218,500. The ending balance in the Finished Goods inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied by $36,700.
-The balance in the Finished Goods inventory account at the beginning of the year was:

A) $13,500
B) $36,700
C) $500
D) $13,000