Fletcher, 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 $660,000 in a year when manufacturing overhead was underapplied by $23,700. If sales revenue totaled $2,010,000, determine (1) Fletcher's adjusted cost of goods sold and (2) gross margin.

Adjusted Cost

of Goods Sold

Gross Margin

A.Adjusted Cost of Goods Sold = $ 636,300; Gross Margin = $ 1,350,000

B.Adjusted Cost of Goods Sold = $ 636,300; Gross Margin = $ 1,373,700

C.Adjusted Cost of Goods Sold = $ 660,000; Gross Margin = $ 1,350,000

D.Adjusted Cost of Goods Sold = $ 683,700; Gross Margin = $ 1,326,300

E.Adjusted Cost of Goods Sold = $ 683,700; Gross Margin = $ 1,350,000

A) Choice A

B) Choice B

C) Choice C

D) Choice D

E) Choice E