Asked by Rileigh Campbell on Jun 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 $53,000 and the total of the credits to the account was $69,000. Which of the following statements is true?
A) Manufacturing overhead applied to Work in Process for the month was $69,000.
B) Manufacturing overhead for the month was underapplied by $16,000.
C) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $53,000.
D) Actual manufacturing overhead incurred during the month was $69,000.
Manufacturing Overhead
All indirect costs associated with the production process, including costs related to factory operation but not directly traceable to the product, such as maintenance and utilities.
Work in Process
Inventory that is in the production process but is not yet completed.
Overapplied
A situation where the allocated amount of indirect costs exceeds the actual amount incurred.
- Identify the conditions in which manufacturing overhead appears to be excessive or insufficient.
Verified Answer
Learning Objectives
- Identify the conditions in which manufacturing overhead appears to be excessive or insufficient.
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