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Sarasota Corporation eliminates its overapplied or underapplied overhead by using the prorated had the following balances: Cost of Goods Sold, $65250 Finished Goods Inventory, $34800 Work-in-Process Inventory, $44950 Actual Manufacturing Overhead, $90000 Applied Manufacturing Overhead, $75000

Sarasota Corporation eliminates its overapplied or underapplied overhead by using the prorated had the following balances: Cost of Goods Sold, $65250 Finished Goods Inventory, $34800 Work-in-Process Inventory, $44950 Actual Manufacturing Overhead, $90000 Applied Manufacturing Overhead, $75000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sarasota Corporation eliminates its overapplied or underapplied overhead by using the prorated method. For the year 2025, Sarasota had the following balances: Cost of Goods Sold, $65250 Finished Goods Inventory, $34800 Work-in-Process Inventory, $44950 Actual Manufacturing Overhead, $90000 Applied Manufacturing Overhead, $75000 After adjustment, what will be the impact on the account balances in Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold using the prorated method? O Work-in-Process Inventory, decreases by $4650; Finished Goods Inventory decreases by $3600; and Cost of Goods Sold decreases by $6750. O Work-in-Process Inventory, increases by $4650; Finished Goods Inventory, increases by $3600; and Cost of Goods Sold increases by $6750. O Work-in-Process Inventory, increases by $6750; Finished Goods Inventory increases by $3600; and Cost of Goods Sold increases by $6750. O Work-in-Process Inventory, increases by $3600; Finished Goods Inventory increases by $4650; and Cost of Goods Sold increases by $6750.
Transcribed Image Text:Sarasota Corporation eliminates its overapplied or underapplied overhead by using the prorated method. For the year 2025, Sarasota had the following balances: Cost of Goods Sold, $65250 Finished Goods Inventory, $34800 Work-in-Process Inventory, $44950 Actual Manufacturing Overhead, $90000 Applied Manufacturing Overhead, $75000 After adjustment, what will be the impact on the account balances in Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold using the prorated method? O Work-in-Process Inventory, decreases by $4650; Finished Goods Inventory decreases by $3600; and Cost of Goods Sold decreases by $6750. O Work-in-Process Inventory, increases by $4650; Finished Goods Inventory, increases by $3600; and Cost of Goods Sold increases by $6750. O Work-in-Process Inventory, increases by $6750; Finished Goods Inventory increases by $3600; and Cost of Goods Sold increases by $6750. O Work-in-Process Inventory, increases by $3600; Finished Goods Inventory increases by $4650; and Cost of Goods Sold increases by $6750.
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