Assume that prior to period-end adjustments, Latonya Company reported Cost of Goods Sold of $15,000, and Sales of $85,000. If Latonya Company had underapplied manufacturing overhead of $5,000, what amount of gross margin will appear on the income statement, after adjustments?

Question

Quizplus · Accepted Answer

Sales, $85,000 - ($15,000, COGS + $5,000 under-applied MOH) = $65,000 Gross Margin

Assume That Prior to Period-End Adjustments, Latonya Company Reported Cost