Tammys Cosmetics uses a normal costing system and has the following balances at the end of its
Question:
Tammy’s Cosmetics uses a normal costing system and has the following balances at the end of its first year’s operations.
WIP inventory ………………. $231,000
Finished-goods inventory ……. 198,000
Cost of goods sold …………… 396,000
Actual factory overhead ……… 416,000
Factory overhead applied ……. 456,000
Compute cost of goods sold for two different ways to dispose of the year-end overhead balances.
By how much would gross profit differ?
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Overhead is overapplied by 456000 416000 40000 First Way Unadjusted cost of goods sold 396000 Deduct ...View the full answer
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Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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