In the Vasquez Corporation, any overapplied or underapplied manufacturing overhead is closed out to Cost of Goods Sold. Last year, the Corporation incurred $27,000 in actual manufacturing overhead cost, and applied $29,000 of manufacturing overhead cost to jobs. The beginning and ending balances of Finished Goods were equal, and the Corporation's Cost of Goods Manufactured for the year totaled $71,000. Given this information, Cost of Goods Sold, after adjustment for any overapplied or underapplied manufacturing overhead, for the year must have been:
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To solve this, let's break down the information step by step.

### Key information:
- **Actual Manufacturing Overhead (MOH)** = $27,000
- **Applied Manufacturing Overhead** = $29,000
- **Cost of Goods Manufactured (COGM)** = $71,000
- **Overapplied or Underapplied Overhead**: 
   - Since the applied overhead ($29,000) is greater than the actual overhead ($27,000), we have **overapplied overhead**.
   - Overapplied overhead = Applied Overhead - Actual Overhead
   - Overapplied overhead = $29,000 - $27,000 = $2,000

### Step 1: Adjust for Overapplied Overhead
- Since the overhead is overapplied, it means we applied too much overhead to the jobs. According to the problem, any overapplied or underapplied overhead is closed to **Cost of Goods Sold (COGS)**.
- When overhead is **overapplied**, we decrease the **Cost of Goods Sold** by the amount of overapplied overhead.

### Step 2: Calculating Adjusted COGS
- The problem does not directly provide the original Cost of Goods Sold, but it gives us the **Cost of Goods Manufactured (COGM)**, which is closely related to COGS.
- Since the balances of Finished Goods at the beginning and end of the year are equal, there is no change in Finished Goods Inventory. Therefore, **COGS before adjustment = COGM**.
- So, **COGS before adjustment** = $71,000.

### Step 3: Adjust the COGS for Overapplied Overhead
- Adjusted COGS = COGS before adjustment - Overapplied Overhead
- Adjusted COGS = $71,000 - $2,000 = **$69,000**.

### Final Answer:
The **Cost of Goods Sold**, after adjustment for overapplied overhead, is **$69,000**.

### Want more details or questions? Here are 5 related questions:

1. What happens to underapplied overhead in such cases?
2. How does the adjustment of overapplied overhead impact net income?
3. Can overapplied overhead occur due to overestimation of overhead rates? 
4. What other accounts could overhead be allocated to if not closed to COGS?
5. How does the Finished Goods inventory affect the COGS calculation in more complex cases?

**Tip:** Always double-check whether overhead is overapplied or underapplied before adjusting Cost of Goods Sold.

In the Vasquez Corporation, any overapplied or underapplied manufacturing overhead is closed out to Cost of Goods Sold. Last year, the Corporation incurred $27,000 in actual manufacturing overhead cost, and applied $29,000 of manufacturing overhead cost to jobs. The beginning and ending balances of Finished Goods were equal, and the Corporation's Cost of Goods Manufactured for the year totaled $71,000. Given this information, Cost of Goods Sold, after adjustment for any overapplied or underapplied manufacturing overhead, for the year must have been:

Learn how to adjust the Cost of Goods Sold for overapplied manufacturing overhead in Vasquez Corporation. Given actual overhead costs of $27,000 and applied overhead of $29,000, find out how to calculate the adjusted COGS for the year, with a detailed step-by-step explanation. Suitable for undergraduate accounting students.

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