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Information regarding a companys year-end account balances is shown below. Account Balance (Before Proration) Allocated Overhead in Each Balance Direct material inventory $ 100,000 $
- Information regarding a companys year-end account balances is shown below.
Account Balance (Before Proration) | Allocated Overhead in Each Balance | |
Direct material inventory | $ 100,000 | $ 0 |
Work-in-process inventory | 25,000 | 10,000 |
Finished goods inventory | 225,000 | 100,000 |
Cost of goods sold | 2,250,000 | 890,000 |
If the companys overhead was overapplied by $90,000 and the company uses the most accurate method of prorating overapplied or underapplied overhead, the balance in the cost of goods sold account after proration would be
A. $2,169,000
B. $2,169,900
C. $2,172,115
D. $2,330,100
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