Income Statement Preparation – Traditional
{"Image DocumentName": "Income Statement Preparation \u2013 Traditional", "Image ImageDescription": "Here is the income statement using the traditional approach. Notice that cost of goods sold is charged with the cost of idle capacity. Using the estimated or budgeted amount of the allocation base in the denominator of the predetermined overhead rate calculation does not allow for disclosure of the idle capacity. In this example, underapplied overhead is not treated as a period expense, but instead, it is allocated to the work in process, finished goods, and/or cost of goods sold.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}