Now, enter the account balances after the$$ write$-$off.

Account Balance

After Proration

Work$-$in$-$Process Control

$$620,000$

Finished Goods Control

$$3,115,000$

Cost of Goods Sold

$$8,715,000$

Part $12$

Requirement $3.$ Which method is preferred in requirement$2?$ Explain.

Alternative

$($b$)$

is theoretically preferred over

$($a$)$ and $($c$).$

This alternative yields the same ending balances in$$ Work$-$in$-$Process, Finished$$ Goods, and Cost of Goods Sold that would have been reported

had budgeted indirect$-$cost rates been used.