COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Manufacturing overhead was overapplied by $20, 000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $471, 000
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Manufacturing overhead was underapplied by $20, 000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $431, 000
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Manufacturing overhead was overapplied by $20, 000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $431, 000
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Manufacturing overhead was underapplied by $20, 000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $471, 000
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Detailed explanation-1: -The actual manufacturing overhead incurred at Gutekunst Corporation during March was $53, 000, while the manufacturing overhead applied to Work in Process was $73, 000. The company’s Cost of Goods Sold was $451, 000 prior to closing out its Manufacturing Overhead account.
Detailed explanation-2: -The Manufacturing Overhead account is used by manufacturing companies to accumulate their overhead costs that were incurred and applied.
Detailed explanation-3: -the actual manufacturing overhead incurred at Hogans Corporation during April was $59, 000, while the mfg overhead applied to work in process was $74, 000. the Companys cost of goods sold was $289, 000 prior to closing out its manufacturing overhead account.
Detailed explanation-4: -If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost applied, then manufacturing overhead would be considered to be underapplied.