At the end of the last fiscal year,Marriott Company had the following account balances: If the most common treatment of assigning overapplied overhead were used,the final balance in Cost of Goods Sold is:

Question

At the end of the last fiscal year,Marriott Company had the following account balances:  If the most common treatment of assigning overapplied overhead were used,the final balance in Cost of Goods Sold is:

Quizplus · Accepted Answer

To calculate the final balance in Cost of Goods Sold using the most common treatment of assigning overapplied overhead, we need to subtract the overapplied amount from the original balance in Cost of Goods Sold. 
Cost of Goods Sold = $10,000,000 
Overapplied Overhead = $26,000 
Final Cost of Goods Sold = $10,000,000 - $26,000 = $974,000. Hence, the correct answer is A.

At the End of the Last Fiscal Year,Marriott Company Had