A manufacturing company has the following balances at the end of its first year's operations Sales OMR350,000; actual manufacturing overhead OMR200,000; manufacturing overhead applied OMR114,000; unadjusted costs of goods sold OMR175,000. The costs of goods sold balance includes overhead applied of OMR51,300. Ending Work in process inventory includes overhead applied of OMR34, 700. Ending finished goods inventory includes overhead applied of OMR28,000. These balances are not adjusted for the overapplied or underapplied factory overhead. The company closes year-end manufacturing overhead balances proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. How much is the gross profit for the year after disposing the year-end overhead balances? Select one: O a. OMR89,000 O b. OMR131,800 OC OMR136,30o0 O d. None of the answers given O e OMR213,700 earning System (Academic)E-learning services -SQU Libraries -SQU Portal Attendance English (en)• Omar Al Hashemisserg_fall20Question 6A manufacturing company has the following balances at the end of its first year's operations:Sales OMR350,000; actual manufacturing overhead OMR200,000; manufacturing overheadapplied OMR114,000; unadjusted costs of goods sold OMR175,000. The osts of goods soldbalance includes overhead applied of OMR51,300. Ending Work in process inventory includesNot yetansweredMarked out of0,80overhead applied of OMR34,700. Ending finished goods inventory includes overhead appliedof OMR28,000. These balances are not adjusted for the overapplied or underapplied factoryoverhead. The company closes year-end manufacturing overhead balances proportionally toWork in Process, Finished Goods, and Cost of Goods Sold. How much is the gross profit forthe year after disposing the year-end overhead balances?P Flag questionSelect one:O a. OMR89,000O b. OMR131,800O c. OMR136,300O d. None of the answers givenO e. OMR213,700sain Spring21Next pagePrevious pageTime left 1:24:51

Answered: A manufacturing company has the…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.1E: Classify costs Following is a list of various costs incurred in producing and selling college...

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A manufacturing company has the following balances at the end of its first year's operations Sales OMR350,000; actual manufacturing overhead OMR200,000; manufacturing overhead applied OMR114,000; unadjusted costs of goods sold OMR175,000. The costs of goods sold balance includes overhead applied of OMR51,300. Ending Work in process inventory includes overhead applied of OMR34, 700. Ending finished goods inventory includes overhead applied of OMR28,000. These balances are not adjusted for the overapplied or underapplied factory overhead. The company closes year-end manufacturing overhead balances proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. How much is the gross profit for the year after disposing the year-end overhead balances? Select one: O a. OMR89,000 O b. OMR131,800 OC OMR136,30o0 O d. None of the answers given O e OMR213,700

Expert Solution

Step 1

Gross Profit = Sales - Unadjusted cost of goods sold - Proportionate actual overheads + Applied overheads

Proportionate actual overheads = Actual overheads x Overheads included in cost of goods sold / Total applied overhead

Step 2

Gross Profit = 350,000 - 175,000 - (51,3000 / 114,000 x 200,000) + 51,300

= 350,000 - 175,000 - 90,000 + 51,300

= 136,300

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