Flagler, Inc. disposes of under or over-applied overhead at…
Flagler, Inc. disposes of under or over-applied overhead at year-end as an adjustment to cost of goods sold. Prior to the disposition of under or over-applied overhead, the firm reported cost of goods sold of $590,000 in a year when manufacturing overhead was under-applied by $15,000. If sales revenue totaled $1,400,000, determine (1) Flagler’s adjusted cost of goods sold and (2) gross margin after dispositioning the over or under applied overhead.
Read Details