Two different questions.. The adjustment of underapplied manufacturingoverhead cost results in:O a. decrease in net operating income.O b. increase in net operating income.c.none of the given answersO d. decrease in cost of goods sold Time left 1:58:Which of the following is correct with respect to closingout underapplied manufacturing overhead to Cost ofGoods Sold versus closing it out to Work-in-ProcessInventory, Finished Goods Inventory, and Cost of GoodsSold?O a.None of given answer is correct.O b. Operating income will be higher if all of theunderapplied overhead is closed out to Cost ofGoods Sold.Cost of Goods Sold will be higher if theunderapplied overhead is closed out byallocating it to the inventory accounts as well asto Cost of Goods Sold.O c.d. The balance in the Work-in-Process accountafter allocation will be the same under eithermethod.O e. The balance in the Work-in-Process accountafter allocation will be higher if theunderapplied overhead is closed out byallocating it to all appropriate accounts.

The adjustment of underapplied manufacturing overhead cost results in: O a. decrease in net operating income. O b. increase in net operating income. C. none of the given answers O d. decrease in cost of goods sold

The adjustment of underapplied manufacturing overhead cost results in: O a. decrease in net operating income. O b. increase in net operating income. C. none of the given answers O d. decrease in 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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