Sales revenue is $750,200; actual manufacturing overhead is $120,500; allocated manufacturing overhead is $96,000; and cost of goods sold before adjustment is $380,800. What is the actual gross profit?

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Quizplus · Accepted Answer

The actual gross profit is calculated as Sales Revenue - Cost of Goods Sold (adjusted for actual overhead). The adjustment for actual overhead is the difference between actual and allocated overhead ($120,500 - $96,000 = $24,500). So, the adjusted COGS is $380,800 + $24,500 = $405,300. Therefore, the actual gross profit is $750,200 - $405,300 = $344,900.

Sales Revenue Is $750,200; Actual Manufacturing Overhead Is $120,500; Allocated