Question 20, E13-42 (similar to) Part 2 of 4 HW Score: 60.63%, 25.46 of 42 points Points: 0.14 of 2 Save = Homework: Wek #7 Chapter #13 Homework Cindy's Cosmetics uses a normal cost system and has the following balances at the end of its first year's operations. WIP inventory $ 205,000 Finished-goods inventory 123,000 492,000 419,000 458,000 Cost of goods sold Actual factory overhead Factory overhead applied Requirement 1. Compute cost of goods sold for two different ways to dispose of the year-end overhead balances. By how much would gross profit differ? Begin by computing the cost of goods sold under the immediate write-off method. The adjusted cost of goods sold is $ 453000. Next compute the cost of goods sold under the proration method. Begin by prorating the write-off to each of the appropriate accounts. Unadjusted balances Proration Work in process Finished goods Cost of goods sold Totals 205000 123000 492000 820000