Fletcher, Inc. disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $648,000 in a year when manufacturing overhead was underapplied by $20,100. If sales revenue totaled $2,340,000, determine (1) Fletcher's adjusted cost of goods sold and (2) gross margin.
Adjusted Cost
of Goods Sold
|
Gross Margin |
| A. $ 627,900 |
$ 1,692,000 |
| B. $ 627,900 |
$ 1,712,100 |
| C. $ 648,000 |
$ 1,692,000 |
| D. $ 668,100 |
$ 1,671,900 |
| E. $ 668,100 |
$ 1,692,000 |