Asked by George Greer on Jul 14, 2024
Verified
Sagon Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of September. 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 $91,000 and the total of the credits to the account was $64,000. Which of the following statements is true?
A) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $91,000.
B) Actual manufacturing overhead incurred during the month was $64,000.
C) Manufacturing overhead applied to Work in Process for the month was $91,000.
D) Manufacturing overhead for the month was underapplied by $27,000.
Manufacturing Overhead
Indirect costs related to manufacturing that are not directly tied to a specific product, like maintenance, utilities, and management salaries.
Cost of Goods Sold
The immediate expenses related to manufacturing products sold by a business, encompassing both materials and labor.
Overapplied
Refers to the situation where the allocated manufacturing overhead cost is greater than the actual manufacturing overhead cost incurred.
- Discern the instances when manufacturing overhead is judged as overallocated or underallocated.
Verified Answer
Learning Objectives
- Discern the instances when manufacturing overhead is judged as overallocated or underallocated.
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