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Question - Mercedes used a budgeted indirect-cost rate for its manufacturing operations, the amount that was allocated ($115,000) to cost of goods sold was different from the actual amount incurred ($135,000).
Ending balances in the relevant accounts were:
Work in process 100000
Finished Goods 300000
Cost of goods sold 600000
If Mercedes uses proration method to write off the difference between allocated and actual overhead, what is the balance of work in process after proration?
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