Predetermined overhead rates. Ortega Company uses a job-order costing system. During a year, the firm applied $280,000 of manufacturing overhead in total. At the end of the year, actual manufacturing...

Predetermined overhead rates. Ortega Company uses a job-order costing system. During a year, the firm applied $280,000 of manufacturing overhead in total. At the end of the year, actual manufacturing overhead was determined to be $260,000. The following data pertain to ending account balances.

Cost of goods sold $200,000

Finished goods inventory $150,000

Raw materials inventory $100,000

Work-in-process inventory $50,000

Required:

a. Assume that Ortega closes underapplied or overapplied overhead into cost of goods sold. What is the final (i.e., adjusted) balance in cost of goods sold?