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Garcia company uses the direct write off method to eliminate its underapplied overhead. assume that garcia incurred actual overhead costs, totaling $85000 and applied overhead

Garcia company uses the direct write off method to eliminate its underapplied overhead. assume that garcia incurred actual overhead costs, totaling $85000 and applied overhead costs of $80000. unfortunately at the year end garcia's chief cost accountant inadvertently forgot to adjust cost of goods sold for the required adjustment amount. what effect will this error have on garcia's cost of goods sold and gross margin?

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