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Adjustment to finished goods inventory

Accounting

Adjustment to finished goods inventory

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Standard cost of goods manufactured = $1,950,000

Actual cost of goods manufactured = Standard cost of goods manufactured - Favorable variance

Actual cost of goods manufactured = $1,950,000 - 288,600 = $1,661,400

Adjustment to finished goods inventory = $288,600 / 1,950,000 * 163,000 = $24,124