Wake Corporation reports the following balances at December 31, 2009:
$$\begin{array} { | l | l | }
\hline \text { Sales revenue } & \$ 360,000 \
\hline \text { Cost of goods sold } & \$ 206,000 \
\hline \text { Allocated manufacturing overhead } & \$ 78,800 \
\hline \text { Actual manufacturing overhead } & \$ 72,800 \
\hline
\end{array}$$ Wake adjusts cost of goods sold for any balance in the manufacturing overhead account at the end of the year. What is the gross profit of Wake Corporation for the year ended December 31, 2009?

Question

Wake Corporation reports the following balances at December 31, 2009:
$$\begin{array} { | l | l | } 
\hline \text { Sales revenue } & \$ 360,000 \
\hline \text { Cost of goods sold } & \$ 206,000 \
\hline \text { Allocated manufacturing overhead } & \$ 78,800 \
\hline \text { Actual manufacturing overhead } & \$ 72,800 \
\hline
\end{array}$$ Wake adjusts cost of goods sold for any balance in the manufacturing overhead account at the end of the year. What is the gross profit of Wake Corporation for the year ended December 31, 2009?

Quizplus · Accepted Answer

The Answer of Wake Corporation reports the following balances at December 31, 2009:
$$\begin{array} { | l | l | } 
\hline \text { Sales revenue } & \$ 360,000 \
\hline \text { Cost of goods sold } & \$ 206,000 \
\hline \text { Allocated manufacturing overhead } & \$ 78,800 \
\hline \text { Actual manufacturing overhead } & \$ 72,800 \
\hline
\end{array}$$ Wake adjusts cost of goods sold for any balance in the manufacturing overhead account at the end of the year. What is the gross profit of Wake Corporation for the year ended December 31, 2009?

Wake Corporation Reports the Following Balances at December 31, 2009