In the past year bellevue co had total tevenues of $2,500,000,$ cost of goods of $991,600($before adjustment for over or underapplied overhead$),$ administrative expenses of $540,000$ and selling expenses of $450000.$ During the year overhead was applied using predetermined rate of $79$ percent of direct labor cost. Actual direct labor was $720000.$ Actual overhead was $518800.$ The ending balances in the inventory accounts are raw materials inventory $32,000$ work in process inventory $134000$ finished goods inventory $214400.$

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 Calculate net income treating the amounts ofboverapplied overhead as immaterial and assigning is to cost of goods sold .

Answer rating: 100% (QA)

To calculate the net income we need to calculate the cost of goods sold COGS and deduct ... View the full answer