7. Would it be appropriate to include selling and administrative expenses in either manufacturing overhead or cost of goods sold?

Yes or No

Required Information [The following Information applies to the questions displayed below.] Finlon Upholstery, Inc., uses a job-order costing system to accumulate manufacturing costs. The company's work-Inprocess on December 31,201, consisted of one job (no. 2077), which was carrled on the year-end balance sheet at $156,800. There was no finlshed-goods Inventory on this date. Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost Is the company's practical capacity, In terms of dlrect-labor hours, multiplled by the budgeted direct-labor rate.) Budgeted totals for 202 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectlvely. Actual results for the year follow. Job no. 2077 was completed In January 20x2; there was no work in process at year-end. All Jobs produced during 202 were sold with the exception of job no. 2143 , which contained direct-materlal costs of $156,000 and direct-labor charges of $85,000. The company charges any under- or overapplied overhead to Cost of Goods Sold. 6. Determine the company's 202 cost of goods sold