Overhead Variances and Their Disposal

Warner Company has the following data for the past year:

Actual overhead	$225,000
Applied overhead:
Work-in-process inventory	$52,000
Finished goods inventory	104,000
Cost of goods sold	104,000
Total	$260,000

Warner uses the overhead control account to accumulate both actual and applied overhead.

Assume the variance calculated is material. After prorating, provide the final ending balances of these accounts.

	Unadjusted Balance		Prorated Overapplied Overhead		Adjusted Balance
Work-in-Process Inventory	$52,000		$		$
Finished Goods Inventory	$104,000		$		$
Cost of Goods Sold	$104,000		$		$