*THE THIRD OPTION IS INCORRECT* Bretthauer Corporation has provided data concern

Question

*THE THIRD OPTION IS INCORRECT*

Bretthauer Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $33,000 and the total of the credits to the account was $40,000. Which of the following statements is true? Manufacturing overhead for the month was underapplied by $7,000 Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $33,000. Actual manufacturing overhead incurred during the month was $40,000 Manufacturing overhead applied to Work in Process for the month was $40,000

Explanation / Answer

Debits in manufacturing overhead accounts means - actual incurred and transferred to Cost of goods sold for finished goods Credits in manufacturing overhead accounts means applied towards work in progress Hence , by the above the 2nd statement is true ie Manufacturing overhead transferred from finished goods to cost of goods sold is $ 33000

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

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