Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versusclosing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold?The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out byallocating it to all appropriate accounts.a.b.None of given answer is correct.С.Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as wellas to Cost of Goods Sold.d.Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold.e.The balance in the Work-in-Process account after allocation will be the same under either method.Clear my choice

תתוחוsכסו Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cos closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? a. The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is allocating it to all appropriate accounts. b. None of given answer is correct. C. Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventon as to Cost of Goods Sold. d. all of tho ouoranpliod overbead is closed out to Cost of Goods Sold.

תתוחוsכסו Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cos closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? a. The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is allocating it to all appropriate accounts. b. None of given answer is correct. C. Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventon as to Cost of Goods Sold. d. all of tho ouoranpliod overbead is closed out to Cost of Goods Sold.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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When the sale of finished goods is recorded, the balance in which of the following accounts will decrease? None of the listed choices are correct Work-in-Process Sales Revenue Cost of Goods Sold Raw Materials Inventory Factory Overhead Finished Goods Inventory
True or False. When the underapplied overhead is assigned to Cost of Goods Sold the effect is to increase the balance on the Cost of Goods Sold account.
2) Under process costing the perpetual inventory system is used account is credited to adjust for underallocated overhead costs. The OA Manufacturing Overhead OB Cost of Goods Soid Oc Sales Revenue OD. Finished Goods inventory
Cost of Goods manufactured is equal to: A. Beginning W.I.P. + Manufacturing Cost less indirect cost applied – Ending W.I.P B. Beginning W.I.P. + Direct material used during current period + Direct Labour cost for current period + Manufacturing overhead applied for current period – Ending W.I.P C. Beginning W.I.P. less indirect manufacturing overhead + Direct material used during current period + Direct Labour cost for current period + Manufacturing overhead applied for current period – Ending W.I.P D. Beginning W.I.P. less period cost + Manufacturing Cost less indirect cost applied – Ending W.I.P
INFO FOR QUESTIONS IN IMAGE 1. Compute the underapplied or overapplied overhead. [Underapplied OR Overapplied] [$ ] 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry. Record the entry to close the balance in the manufacturing overhead account to the cost of goods sold account. (Note: Enter debits before credits.) Event General Journal Debit Credit 1 3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. Record the allocation of the underapplied/overapplied overhead to various accounts. (Note: Enter debits before credits.) Event General Journal Debit Credit 1 4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to…
The journal entry for adjustment of underallocated manufacturing overhead includes a: A) credit to Finished Goods Inventory. B) credit to Manufacturing Overhead. C) debit to Work-in-Process Inventory. D) credit to Cost of Goods Sold.
Which of the following statements is false? Multiple Choice Work in process inventory included in the balance sheet. Work process inventory includes direct materials used in production. Work in process inventory includes direct labor costs. Work in process inventory includes actual manufacturing overhead costs assigned to jobs worked on during the period.
18 The EUP will be the same under FIFO method and weighted average methos if there is no beginning work in process inventory. In process costing the cost per unit in a department is found by spreading the period’s production costs over the production activity. Group of answer choices Both statements are false. Only statement II is true. Both statements are true. Only statement I is true.
Under variable costing, which of the following costs would not be included in finished goods inventory? a. electricity used by factory machinery b. steel costs for a machine tool manufacturer c. salary of factory supervisor d. wages of machine operator
Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare thenecessary journal entry.
What affect would closing an OVERAPPLIED Manufacturing Overhead account to Cost of Goods Sold have on the accounting records? Group of answer choices A. Cost of Goods Sold would increase B. Net Income would decrease C. Cost of Goods Sold would decrease Both A & B
Which of the following is NOT true ? a. The salary of the factory manager is considered to be an indirect cost of producing one unit of product. b. An indirect cost cannot be easily traced to a particular cost object. c. The classification of a cost as direct or indirect does not depend on the cost object. d. A direct cost can be easily traced to a particular cost object.