The Precision Widget Company had the following balances in their accounts at the end of the accounting
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Question:
- The Precision Widget Company had the following balances in their accounts at the end of the accounting period:
Work in Process Inventory | $45,000 |
Finished Goods Inventory | $67,500 |
Cost of Goods Sold | $112,500 |
Given the company’s manufacturing overhead was overallocated by $8,000 and Precision Widget adjusts for this overallocation in their accounts using a proration based on total ending balances in Work in Process, Finished Goods, and Cost of Goods Sold,
- Calculate the following adjusted balances:
Account | Adjusted Balance |
Work in Process Inventory | |
Finished Goods Inventory |
- Given sales revenue of $300,000, what is the company’s gross profit reported on the Income Statement?
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