HLY Corporation's accounting information system showed the following balances at the end of this period:
Work in process $20,000
Finished goods 30,000
Cost of goods sold 50,000
Overapplied overhead this period totalled $60,000; HLY maintains a single overhead account in its general ledger.
Does HLY use an actual or a normal costing system? Explain your answer.

Question

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The Answer of HLY Corporation's accounting information system showed the following balances at the end of this period:
Work in process $20,000
Finished goods 30,000
Cost of goods sold 50,000
Overapplied overhead this period totalled $60,000; HLY maintains a single overhead account in its general ledger.
Does HLY use an actual or a normal costing system? Explain your answer.

HLY Corporation's Accounting Information System Showed the Following Balances at the End