Question

Sykes company has sales revenue of $585,000. cost of goods sold before adjustment is $335,000. the company's actual manufacturing overhead is $91,000, while allocated manufacturing overhead is $104,400.What is the actual gross profit?

a. $263,200
b. $249,800
c. $157,900
d. $236,400

Answer 1

Actual Gross Profit $263,400

Step-by-step explanation:

The computation of the actual gross profit is as follows:

Allocated manufacturing overheads $104,400

Actual manufacturing overheads $91,000

Over applied manufacturing overheads $13,400

Unadjusted cost of goods sold $335,000

Less: Over applied manufacturing overheads $13,400

Adjusted cost of goods sold $321,600

Sales Revenue $585,000

Less: Adjusted cost of goods sold $321,600

Actual Gross Profit $263,400

This is the answer but the same is not provided in the given options