The Oklahoma State Company produces 9-volt batteries and AAA batteries. The company uses a plant-wide rate to apply overhead based on direct labor hours. The following data are given: Actual overhead Estimated Overhead Estimated activity: 9-volt battery AAA battery Actual activity: 9-volt battery AAA battery Units produced: 9-volt battery AAA battery Raw materials inventory Work in process inventory Finished goods inventory Cost of goods sold 100,000 direct labor hours 400,000 direct labor hours $325,000 125,000 direct labor hours $350,000 400,000 direct labor hours $200,000 If Oklahoma State uses the pro-ration approach to dispose of over-/under-allocated overhead and the accounts below had the following balances, how will cost of goods sold be adjusted? $100,000 $200,000 $500,000 500,000 250,000
The Oklahoma State Company produces 9-volt batteries and AAA batteries. The company uses a plant-wide rate to apply overhead based on direct labor hours. The following data are given: Actual overhead Estimated Overhead Estimated activity: 9-volt battery AAA battery Actual activity: 9-volt battery AAA battery Units produced: 9-volt battery AAA battery Raw materials inventory Work in process inventory Finished goods inventory Cost of goods sold 100,000 direct labor hours 400,000 direct labor hours $325,000 125,000 direct labor hours $350,000 400,000 direct labor hours $200,000 If Oklahoma State uses the pro-ration approach to dispose of over-/under-allocated overhead and the accounts below had the following balances, how will cost of goods sold be adjusted? $100,000 $200,000 $500,000 500,000 250,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
N1.
Account
![credit $12,500
Ⓒdebit $12,500
credit $26,562.50
credit $42,500
debit $21,250](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10d14acb-fdb4-4aa7-af08-08422a840293%2F641147b1-a08f-43a3-95ce-f2d74432bedf%2Feaw8lnj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:credit $12,500
Ⓒdebit $12,500
credit $26,562.50
credit $42,500
debit $21,250
![The Oklahoma State Company produces 9-volt batteries and AAA batteries. The company uses a
plant-wide rate to apply overhead based on direct labor hours. The following data are given:
Actual overhead
Estimated Overhead
Estimated activity:
9-volt battery
AAA battery
Actual activity:
9-volt battery
AAA battery
Units produced:
9-volt battery
AAA battery
Work in process inventory
Finished goods inventory
Cost of goods sold
100,000 direct labor hours
400,000 direct labor hours
$325,000
125,000 direct labor hours
$350,000
400,000 direct labor hours
$200,000
If Oklahoma State uses the pro-ration approach to dispose of over-/under-allocated overhead and
the accounts below had the following balances, how will cost of goods sold be adjusted?
Raw materials inventory
$100,000
$200,000
$500,000
500,000
250,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10d14acb-fdb4-4aa7-af08-08422a840293%2F641147b1-a08f-43a3-95ce-f2d74432bedf%2F4rtrbyq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Oklahoma State Company produces 9-volt batteries and AAA batteries. The company uses a
plant-wide rate to apply overhead based on direct labor hours. The following data are given:
Actual overhead
Estimated Overhead
Estimated activity:
9-volt battery
AAA battery
Actual activity:
9-volt battery
AAA battery
Units produced:
9-volt battery
AAA battery
Work in process inventory
Finished goods inventory
Cost of goods sold
100,000 direct labor hours
400,000 direct labor hours
$325,000
125,000 direct labor hours
$350,000
400,000 direct labor hours
$200,000
If Oklahoma State uses the pro-ration approach to dispose of over-/under-allocated overhead and
the accounts below had the following balances, how will cost of goods sold be adjusted?
Raw materials inventory
$100,000
$200,000
$500,000
500,000
250,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education