ACC 311 Final Project I DE part.docx - ACC 311 Final...

ACC 311 Final Project I
Jiamin Wang
Southern New Hampshire University

SRS’s performance is amazing. The revenue is $8000. The cost of goods sold is
3890. The profitability is very high. It means the product is making a lot of money for
the company. SRS should continue to have in-house press production. For the budget
for manufacturing overhead costs, SRS’s budget is $130 extra. It is a very small
amount. The budget is $2080. It is only a 6.25% difference. It is a very good budget
for the company. Because the cost can go higher due to other reasons. A little bit
higher is totally acceptable. The easiest way to take care of under- or overallocated
overhead cost is the Write-off to cost of goods sold approach. For the difference of
manufacturing overhead control, and manufacturing overhead allocated, it will be a
part of the cost of goods sold in the end. SRS will have $130 in cost of goods sold
account as credit. It will reduce the cost of selling in the end.,