A firm had the following balances at the end of the period Work in process $400
Finished goods 600
Cost of goods sold 1,000
Overapplied overhead 400
It was determined that the overapplied overhead should be treated as immaterial. After any adjustments for overapplied overhead are made, the balance of work in process would be:

Question

Quizplus · Accepted Answer

Since the overapplied overhead is considered immaterial, it is not necessary to adjust it. Therefore, the balance of work in process remains at $400.

A Firm Had the Following Balances at the End of the Period