Problem:
Sanders Manufacturing has the following amounts listed before reconciling the overhead variance.
| Estimated overhead |
$760,000
|
| Applied overhead |
756,000
|
| Actual overhead |
740,000
|
| Cost of goods sold |
935,000
|
|
|
Required:
Assuming that any overhead variance is immaterial, calculate the adjusted Cost of Goods Sold after adjusting for the overhead variance.
Note: Please explain comprehensively and give step by step solution.