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Underapplied or Overapplied Overhead World Window Company produces custom windows to specifications provided by architects....

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Accounting

Underapplied or Overapplied Overhead

World Window Company produces custom windows to specifications provided by architects. At the end of its accounting period, its account balances indicated the following:

Required

a. Determine the adjusted balances of the accounts if the balance in Manufacturing Overhead is considered immaterial in amount and assigned to cost of goods sold.

b. Determine the adjusted balances of the accounts if the balance in Manufacturing Overhead is considered material in amount. Round to the nearest whole dollar.

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