Fletcher,Inc

Multiple Choice

Fletcher,Inc.disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold.Prior to disposal,the firm reported cost of goods sold of $590,000 in a year when manufacturing overhead was underapplied by $15,000.If sales revenue totaled $1,400,000,determine (1) Fletcher's adjusted cost of goods sold and (2) gross margin.

A) Choice A
B) Choice B
C) Choice C
D) Choice D
E) Choice E