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

Multiple Choice

Eccles 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 $384,000 and credited for $325,900. The ending balance in the Finished Goods inventory account was $72,100. At the end of the year, manufacturing overhead was underapplied by $5,400.
-The balance in the Finished Goods inventory account at the beginning of the year was:

A) $72,100
B) $5,400
C) $14,000
D) $58,100