Overhead Allocation Based on Cost of Goods Sold

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  1.  There is a demonstration worksheet which illustrates how to use this tool directly below the live worksheet.
  2.   The calculator may show negative numbers for completed projects because the overhead allocation factor is constantly adjusting to the actual relationship between Cost of Goods Sold and General and Administrative expenses for all jobs in all periods.
  3.  Make the adjustments monthly or annually by making a General Journal entry to your accounting platform.
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