10026_022210_96 - Most Theoretically Correct Method: W.I.P....

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-Green handout given during class explaining prorating and an in-class example problem. Prorating: Across the 3 Accounts: W.I.P. 88,000 88,000/218,400= 40.3% (2880) = $1161 FG 10,160 10,160/218,400= 4.6% (2880) = $132 CGS 120,240 120,240/218,400= 55.1% (2880) = $1587 Total 218,400 $2880 (Under Applied OH)
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Unformatted text preview: Most Theoretically Correct Method: W.I.P. 36000 3600/86,400= 41.67% (2880)= 1200 FG 4560 4560/86,400= 5.3% (2880) = 154 CGS 45,840 45,840/86,400= 53% (2880)= 1526 Total 86,400 $2880 (Under Applied OH) Actual Costing = 37,200 Prorated =36,000 + 1200 = 37,200...
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