9 2 points
A company has under-allocated overhead of $5,000 at the end of the year. The company decides to prorate this amount between Work in Process (WIP), Finished Goods, and
Cost of Goods Sold (COGS) based on the following account balances before proration:
\textbullet WIP: \$30,000
\textbullet Finished Goods: \$50,000
\textbullet COGS: \$120,000
What is the total amount of under-allocated overhead that should be allocated to COGS?