Gurtner Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

A) $170,000
B) $167,000
C) $203,000
D) $163,000

The adjusted cost of goods sold can be calculated as follows:
Beginning WIP inventory + Total manufacturing costs - Ending WIP inventory = Cost of goods manufactured
$18,000 + $160,000 - $12,000 = $166,000
Then, to account for any underapplied or overapplied overhead, we add or subtract the amount to/from the cost of goods manufactured:
$166,000 + $1,000 = $167,000
Therefore, the adjusted cost of goods sold is $167,000.