Asked by Deanne Pawhay on May 10, 2024
Verified
Matthias Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of May. 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 $65,000 and the total of the credits to the account was $93,000. Which of the following statements is true?
A) Manufacturing overhead applied to Work in Process for the month was $93,000.
B) Manufacturing overhead for the month was underapplied by $28,000.
C) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $65,000.
D) Actual manufacturing overhead incurred during the month was $93,000.
Manufacturing Overhead
Manufacturing overhead includes all production costs other than direct labor and direct materials, such as maintenance, depreciation, and utilities.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold in a company.
Overapplied
A situation in cost accounting where the applied manufacturing overhead cost is more than the actual overhead incurred.
- Determine when manufacturing overhead is overapplied or underapplied.
Verified Answer
Learning Objectives
- Determine when manufacturing overhead is overapplied or underapplied.
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