z under-applied the overhead of $45,000 for the year. The following is the ending balances on the trial balance before the disposition of under-applied overh company allocates under-applied overhead using a proration approach. Calculate the cost of goods sold to be reported on the income statement. Balance Sheet Items Raw materials Work in process Finished goods $ 36,000 $ 54,000 $90,000 Income Statement Item Cost of goods sold 720,000