PLEASE HELP! Question about unadjusted cost of goods sold?

Question

Keowee Enterprises began the year with $165,700 of finished goods inventory. During the year the company manufactured goods costing $689,200. At the end of the year, $194,100 of finished goods remained in inventory. Actual manufacturing overhead was $235,800, estimated manufacturing overhead was $230,000, and manufacturing overhead applied totaled $221,500.
Reference: 09_04

The unadjusted cost of goods sold was:

a. $854,900
b. $717,600
c. $675,100
d. $660,800

Answer 1

Cost of goods sold is defined as the actual cost that is directly incurred by manufacturing the good.

Thus, take:
Incoming inventory + cost of goods created - ending inventory. The Manufacturing overhead is indirect, and is thus not counted.

165,700 + 689,200 - 194,100 = $660,800 (solution!)