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At the end of 2019 , Bolton decides to adjust the manufacturing overhead rate to 190 % of direct labor cost. She explains to the
At the end of 2019 , Bolton decides to adjust the manufacturing overhead rate to 190 % of direct labor cost. She explains to the company president that, because overhead was underallocated in 2019 , this adjustment is necessary. Cost information for 2020 follows: Actual direct manufacturing labor, 2020 $700,000 Actual manufacturing overhead costs, 2020 $1,150,000 The ending balances (before proration of under- or overallocated overhead) in each account are as follows: Balance 12/31/2020 Cost of Goods Sold $3,000,450 Finished Goods Control 300,045 Work-in-Process Control 314,505. Walker Brothers' revenue for 2020 was $ 5 comma 905 comma 000 , and the company's selling and administrative expenses were $ 3 comma 069 comma 000 . Now calculate the net income.
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