A firm uses backflush costing to assign product costs to inventory and values inventory using throughput accounting. All actual cost and unit figures below are equal to budgeted amounts. (Treat in-process units as 100% complete, and treat units started as total equivalent units.)

Total DM	$160,000
Total DL	$40,000
Total Variable OH	$100,000
Total Fixed OH	$100,000
Units started	100,000
Units unsold	300
Units in process	700

There are $2,000 of raw materials leftover at the end of the period. After backflushing costs, what is the balance of the cost of goods sold account?

Answers:	a. $156,400
	b. $196,000
	c. $158,400
	d. $198,000

Answer rating: 100% (QA)

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