Question

Okay, let's calculate the year end adjustment for overhead. Based on the data below, determine the amount of the year end adjustment to cost of goods sold due to over or under allocated manufacturing overhead during the year

Answer 1

the adjustment made to the cost of goods sold is -$2,014

Explanation:

The computation of the adjustment made to the cost of goods sold is given below:

Total actual overhead expenses $110,822

Less: Total overheads allocated -$112,836

Adjustment made to the cost of goods sold -$2,014

Hence, the adjustment made to the cost of goods sold is -$2,014

The same should be considered