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Question: overhead variances and their disposal warner company has the following...

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Overhead Variances and Their Disposal

Warner Company has the following data for the past year:

Actual overhead $225,000
Applied overhead:
      Work-in-process inventory $52,000
      Finished goods inventory 104,000
      Cost of goods sold 104,000
      Total $260,000

Warner uses the overhead control account to accumulate both actual and applied overhead.

Assume the variance calculated is material. After prorating, provide the final ending balances of these accounts.

Unadjusted
Balance
Prorated Overapplied
Overhead
Adjusted
Balance
Work-in-Process Inventory $52,000 $ $
Finished Goods Inventory $104,000 $ $
Cost of Goods Sold $104,000 $ $
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