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

Multiple Choice

Echo 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 $360,000 and credited for $338,800. The ending balance in the Finished Goods inventory account was $36,600. At the end of the year, manufacturing overhead was overapplied by $15,900. The balance in the Finished Goods inventory account at the beginning of the year was:

A) $15,900
B) $15,400
C) $21,200
D) $36,600