Final answer:
The adjusted cost of goods sold for Martin Industries is calculated by adding the underapplied overhead to the unadjusted COGS. Since the overhead was underapplied by $30,000, the adjusted COGS is $480,000.
"The correct option is approximately option C"
Step-by-step explanation:
Martin Industries had an unadjusted cost of goods sold (COGS) of $450,000. Overhead was underapplied by $30,000. When overhead is underapplied, it means that the estimated overhead costs were less than the actual overhead costs incurred; therefore, to balance the books, we need to add this underapplied amount to the unadjusted COGS to find the adjusted COGS.
The calculation is straightforward:
Adjusted COGS = Unadjusted COGS + Underapplied Overhead
Adjusted COGS = $450,000 + $30,000
Adjusted COGS = $480,000
Thus, after accounting for the underapplied overhead, the adjusted cost of goods sold for Martin Industries is $480,000. The correct answer to the given multiple choice question is c. $480,000.