The cost of goods sold in a single product company is equal to the number of units sold multiplied by their unit product cost, plus any overapplied overhead or less any underapplied overhead.

Question

Quizplus · Accepted Answer

The cost of goods sold is calculated as the number of units sold multiplied by their unit product cost, but it is adjusted by adding underapplied overhead or subtracting overapplied overhead, not the other way around.

The Cost of Goods Sold in a Single Product Company