1. Slim Technology Inc. records the following amounts before reconciling the ove
ID: 2342249 • Letter: 1
Question
1. Slim Technology Inc. records the following amounts before reconciling the overhead variance.
Calculate the cost of goods sold for Slim Technology Inc. after adjusting for any overhead variance.
$677,250
$12,000
$701,250
$689,250
2. Lithium Metals Inc. recorded sales of $200,000 and cost of goods sold of $160,000 in June 20X1. Its selling and administrative expenses totaled $12,000. Calculate the net operating income.
$28,000
$40,000
$52,000
$12,000
Applied overhead $567,000 Actual overhead 555,000 Normal cost of goods sold 701,250Explanation / Answer
1 Normal cost of goods sold 701250 Less: Overapplied overhead 12000 =567000-555000 Cost of goods sold after adjusting for any overhead variance 689250 2 Sales 200000 Less: Cost of goods sold 160000 Gross margin 40000 Less: Selling and administrative expenses 12000 Net operating income 28000
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