Problem 7-52 (Algo) Predetermined Rates, Prorate Over- or Underapplied Overhead (LO 7-3) Bromley Custom Cabinetry (BCC) uses a job costing system and applies overhead based on direct materials cost. Last year, manufacturing overhead was expected to be $721,600 and direct materials cost was estimated to be $656,000. Actual manufacturing overhead amounted to $721,600, as estimated, and actual direct materials cost was $625,000. BCC allocates any over- or underapplied overhead to three accounts-Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold-based on the balances in those accounts. At the end of the year, the total amount in the three accounts (Work-in- Process Inventory, Finished Goods Inventory, and Cost of Goods Sold) was $2 million before any allocation. As a part of the process, you learn that BCC allocated $30,008 to Cost of Goods Sold. Required: What will Bromley report as Cost of Goods Sold for the year? Note: Do not round intermediate calculations. Enter your answer in dollars, rather than in millions of dollars. Cost of goods sold

Problem 7-52 (Algo) Predetermined Rates, Prorate Over- or Underapplied Overhead (LO 7-3) Bromley Custom Cabinetry (BCC) uses a job costing system and applies overhead based on direct materials cost. Last year, manufacturing overhead was expected to be $721,600 and direct materials cost was estimated to be $656,000. Actual manufacturing overhead amounted to $721,600, as estimated, and actual direct materials cost was $625,000. BCC allocates any over- or underapplied overhead to three accounts-Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold-based on the balances in those accounts. At the end of the year, the total amount in the three accounts (Work-in- Process Inventory, Finished Goods Inventory, and Cost of Goods Sold) was $2 million before any allocation. As a part of the process, you learn that BCC allocated $30,008 to Cost of Goods Sold. Required: What will Bromley report as Cost of Goods Sold for the year? Note: Do not round intermediate calculations. Enter your answer in dollars, rather than in millions of dollars. Cost of goods sold

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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