Sanders Manufacturing has the following amounts listed before reconciling the overhead variance. Assuming that any overhead variance is immaterial, calculate the adjusted Cost of Goods Sold after adjusting for the overhead variance.

Question

Sanders Manufacturing has the following amounts listed before reconciling the overhead variance.  Assuming that any overhead variance is immaterial, calculate the adjusted Cost of Goods Sold after adjusting for the overhead variance.

Quizplus · Accepted Answer

Since any overhead variance is immaterial, we can ignore it and directly calculate the adjusted Cost of Goods Sold by subtracting the total manufacturing costs from the total cost of goods available for sale. Adjusted Cost of Goods Sold = $1,350,000 - $431,000 - $68,000 = $919,000. Therefore, the correct answer is A).

Sanders Manufacturing Has the Following Amounts Listed Before Reconciling the Overhead