Revisit Exercise 4-14 about Drew Corp.

If you have not already completed that exercise, do so before answering the following questions.

Required
a. Calculate under- or overapplied overhead for the year.
b. Assuming that Drew closes under- or overapplied overhead to Cost of Goods Sold, calculate the cost of goods sold for the year.
c. Assuming that Drew prorates under- or overapplied overhead to the appropriate accounts, calculate the adjusted Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold balances for theyear.

Transcribed Image Text:

Raw Materials Inventory Beg. 15,000 Work in Process Inventory Beg. 31,000 Cash Finished Goods Inventory Beg. 22,000 Beg. 32,000 Accounts Receivable Accounts Payable Beg. 56,000 Beg. 42,000