The Manufacturing Overhead account shows debits of $480,000, $384,000, and $448,

Question

The Manufacturing Overhead account shows debits of $480,000, $384,000, and $448,000 and one credit for $1,248,000. Based on this information, what is the impact, if any, on Cost of Goods Sold? A : Cost of Goods Sold will be debited for the $64,000 of overapplied overhead

B : Cost of Goods Sold will be credited for the $64,000 of underapplied overhead

C : Cost of Goods Sold will be debited for the $64,000 of underapplied overhead

D : Cost of Goods Sold will be credited for the $64,000 of overapplied overhead

Explanation / Answer

correct option is "C" -Cost of Goods Sold will be debited for the $64,000 of underapplied overhead

Actual overhead = 480000+384000+448000 = 1312000

Applied overhead = 1248000

Overhead underapplied = 64000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.