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Course Name: Cost accounting

Q4. Huda Corporations accounting information system showed the following balances at the end

of this period:

Work in process $40,000

Finished goods 60,000

Cost of goods sold 100,000

Miss-applied overhead this period totaled $60,000; Huda maintains a single overhead account in its general ledger. If the miss-applied overhead is considered material, prepare the journal entry to record its disposition.

Discuss why you could have Misallocated Overhead? (Ch 5 Marks 4)

Answer:

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