Reference no: EM132974951

Question - Briton Inc. has two processes-Coloring Department and Mixing Department. Briton sold 350 gallons on account at $110 per gallon. The total cost of processing was $385,000 for 5,500 gallons of paint. Throughout the year, the company used a predetermined overhead allocation rate to allocate $75,000 and $65,000 of indirect costs to the Coloring Department and Mixing Department, respectively. The actual overhead cost incurred amounted to $150,000 at the end of the year. Calculate total cost of goods sold for Briton Inc. Also, prepare the necessary journal entry for adjustment of over- or under-allocated manufacturing overhead at the end of the year. Briton uses the perpetual inventory system and process costing.