Question

World Window Company produces custom windows to specifications provided by architects. At the end of its accounting period, its account balances indicated the following:
Raw Materials Inventory.......$ 80,000
Work in Process Inventory...... 66,000
Finished Goods Inventory........ 44,000
Cost of Goods Sold........ 440,000
Manufacturing Overhead (credit balance) ...50,000

Required
a. Determine the adjusted balances of the accounts if the balance in Manufacturing Overhead is considered immaterial in amount and assigned to Cost of Goods Sold.
b. Determine the adjusted balances of the accounts if the balance in Manufacturing Overhead is considered material in amount Round to the nearest whole dollar.



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  • CreatedSeptember 12, 2013
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