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sveticcg [70]
2 years ago
7

A company had an unadjusted Cost of Goods Sold of $1,690,000. The company closes its underapplied or overapplied overhead to Cos

t of Goods Sold. The company had actual manufacturing overhead of $650,000 and applied manufacturing overhead of $666,250. What is the adjusted Cost of Goods Sold for the year
Business
1 answer:
lakkis [162]2 years ago
8 0

Answer:

"$1,673,750" is the appropriate answer.

Explanation:

The given values in the question are:

Applied overhead,

= $666,250

Actual overhead,

= $650,000

Unadjusted cost,

= $1,690,000

Now,

The overapplied overhead will be:

= Applied \ overhead-Actual \ overhead

= 666,250-650,000

= 16,250 ($)

hence,

The goods sold's adjusted cost will be:

= Unadjusted \ cost-Overapplied \ overhead

= 1,690,000-16,250

= 1,673,750 ($)

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