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A manufacturing Company uses machine hours as a single allocation rate to allocate indirect manufacturing costs. During 2011, the accounting records showed the estimated manufacturing
A manufacturing Company uses machine hours as a single allocation rate to allocate indirect manufacturing costs. During 2011, the accounting records showed the estimated manufacturing overhead cost is $100,000 and estimated machine hours are 20,000 machine hours. Actual results for 2011 indicate that actual machine hours were 22,500 hours with a total of $109,500 If the company policy is to write off the over or under applied overhead in the cost of goods sold, and the cost of goods sol for 2011 totalled $800,000 before closing, Calculate the balance of cost of goods sold that will appear in the balance sheet for 2011
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