Okay, let’s calculate the year end adjustment for overhead. Based on the data below, determine the amount of the year end adjustment to cost of goods sold due to over or under allocated manufacturing overhead during the year
Question
Question
Okay, let’s calculate the year end adjustment for overhead. Based on the data below, determine the amount of the year end adjustment to cost of goods sold due to over or under allocated manufacturing overhead during the year
Answer:
the adjustment made to the cost of goods sold is -$2,014
Step-by-step explanation:
The computation of the adjustment made to the cost of goods sold is given below:
Total actual overhead expenses $110,822
Less: Total overheads allocated -$112,836
Adjustment made to the cost of goods sold -$2,014
Hence, the adjustment made to the cost of goods sold is -$2,014
The same should be considered