Flagler, Inc. disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $599,000 in a year when manufacturing overhead was underapplied by $22,700. If sales revenue totaled $1,550,000, determine (1) Flaglers adjusted cost of goods sold and (2) gross margin

	Adjusted Cost of Goods Sold				Gross Margin
A.	$	576,300			$	951,000
B.	$	576,300			$	973,700
C.	$	599,000			$	951,000
D.	$	621,700			$	928,300
E.	$	621,700			$	951,000

Multiple Choice

• Choice A

• Choice B

• Choice C

• Choice D

• Choice E