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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

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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credit $12,500 Ⓒdebit $12,500 credit $26,562.50 credit $42,500 debit $21,250
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
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
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