Testor Products uses a job-order costing system with a predetermined overhead rate based on machine-hours. The company closes out any underapplied or overapplied overhead to Cost of Goods Sold.Required:If overhead is overapplied, what adjustment does the company make to Cost of Goods Sold? Is Cost of Goods Sold increased or decreased? Why?
What will be an ideal response?
If overhead is overapplied, too much overhead has been applied to inventories and they are therefore overcosted. Since these excess costs flow through to Cost of Goods Sold when finished goods are sold, it is necessary to reduce Cost of Goods Sold in order to eliminate this overstatement of costs.
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On January 1, 2017, Dennis Supply purchased equipment for $60,000 cash, expecting it to remain in service for six years. The equipment is depreciated using the straight-line method with $2,000 estimated residual value. On April 30, 2019, the equipment was sold for $48,000 cash. Record depreciation expense for 2019 and the sale of the equipment on April 30, 2019. (Round all intermediate calculations to two decimal places. Round final numbers to nearest dollar.) Omit explanations.
What will be an ideal response?
What concept describes an employee’s state of mind that reflects a combination of their commitment to their employer and the degree to which they are wiling to actively support and help out colleagues:
a. employee engagement b. employee expression c. employee emancipation d. employee awareness
Which of the following describes privacy?
A. The assurance that messages and data are available only to those who are authorized to view them. B. Policies and procedures that address the ethical use of computers and Internet usage in the business environment. C. The right to be left alone when you want to be, to have control over your own personal possessions and to not be observed without your consent. D. The principles and standards that guide our behavior toward other people.
The benefits of BPM are driven by the Four R's of Process:
A) Roles, Relationships, Revenue, Routing. B) Rules, Relationships, Revenue, Routing. C) Roles, Rules, Revenue, Routing. D) Roles, Relationships, Rules, Routing. E) none of the above