The following information is available for 20X5 for Ocra & Associates Oil Refinery:
Ending Work in Process: $50,000 (including applied overhead of $20,000)
Ending Finished Goods: $130,000 (including applied overhead of $40,000)
Cost of Goods Sold for the year: $1,200,000 (including applied overhead of $440,000 from this year)
At year end, the company had an under-applied overhead balance of $38,000. This amount IS considered significant.
What is the adjusting entry required with respect to overhead at year end?

Question

Quizplus · Accepted Answer

The Answer of The following information is available for 20X5 for Ocra & Associates Oil Refinery:
Ending Work in Process: $50,000 (including applied overhead of $20,000)
Ending Finished Goods: $130,000 (including applied overhead of $40,000)
Cost of Goods Sold for the year: $1,200,000 (including applied overhead of $440,000 from this year)
At year end, the company had an under-applied overhead balance of $38,000. This amount IS considered significant.
What is the adjusting entry required with respect to overhead at year end?

The Following Information Is Available for 20X5 for Ocra