Acc561 Introduction to Management Accounting: 13-42 Liz’s Cosmetics uses a normal cost system

Acc561 Introduction to Management Accounting13-42 Disposition of Year-End Underapplied Overhead Liz’s Cosmetics uses a normal cost system and has the following balances at the end of its first year’s operations. WIP inventory $200,000 Finished-goods inventory 200,000 Cost of goods sold 400,000 Actual factory overhead 409,000 Factory overhead applied 453,000. 
Compute gross profit for two different ways to dispose of the year-end overhead balances. By how much would gross profit differ?
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