Beshaw Incorporated has provided the following data for the month of January. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was underapplied by $7,000.The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.The cost of goods sold for January after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

A) $233,530
B) $220,720
C) $232,340
D) $219,530

Direct materials: $70,000
Direct labor: $40,000
Manufacturing overhead applied: $65,000
Total manufacturing costs: $175,000

Add: Work in process inventory, beginning $0
Total cost of work in process $175,000

Less: Work in process inventory, ending $0
Cost of goods manufactured $175,000

Add: Beginning finished goods inventory $0
Cost of goods available for sale $175,000

Less: Ending finished goods inventory $-5,400

Cost of goods sold $232,340

Since manufacturing overhead was underapplied, we need to allocate the underapplied amount of $7,000 back into the three accounts on the basis of the overhead applied during the month. The overhead applied during the month was $65,000 ($70,000 x 92.86%)

Allocation to work in process: $60,292 ($65,000 x 92.68%)
Allocation to finished goods: $4,364 ($65,000 x 6.32%)
Allocation to cost of goods sold: $344 ($7,000 - $4,364 - $60,292)

The adjusted cost of goods sold for January is $232,340 ($232,340 + $344).