At the end of the last fiscal year,Sheraton Company had the following account balances:
Overupplied ovehend $\$ 6,000$
Cast ar Gands Eald $980,000
Work in Process Irvintory $\$ 38,000$
FinishedGoods Inventory $ \$ 82,000 $

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,Sheraton Company had the following account balances:
Overupplied ovehend                                    $\$ 6,000$
Cast ar Gands Eald                                      $980,000
Work in Process Irvintory                              $\$ 38,000$
FinishedGoods Inventory                                $ \$ 82,000 $

If the most common treatment of assigning overapplied overhead were used,the final balance in Cost of Goods Sold is:

Quizplus · Accepted Answer

Overapplied overhead is closed to Cost of Goods Sold. The balance in Cost of Goods Sold would be $980,000 (beginning balance) - $6,000 (overapplied overhead) = $974,000.

At the End of the Last Fiscal Year,Sheraton Company Had $6,000\$ 6,000$6,000

At the End of the Last Fiscal Year,Sheraton Company Had $\$ 6,000$