Sagon Corporation has provided data concerning the Corporation\'s Manufacturing
ID: 2609738 • Letter: S
Question
Sagon Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of September. 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 $75,000 and the total of the credits to the account was $56,000. Which of the following statements is true?
Multiple Choice
Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $75,000.
Actual manufacturing overhead incurred during the month was $56,000.
Manufacturing overhead applied to Work in Process for the month was $75,000.
Manufacturing overhead for the month was underapplied by $19,000.
Explanation / Answer
solution:
Manufacturing overhead
Conclusion: A debit balance in manufacturing overhead means that manufacturing overhead was underapplied.
Therefore, the last option(statement) is correct.
Account (Debit) Balance = $75,000 Credit Balance = $56,000 Underapplied = $19,000Related Questions
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