Closing of the overapplied or underapplied balance


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 $67,000 and the total of the credits to the account was $57,000

Which of the following statements is true?

1. Manufacturing overhead for the month was overapplied by $10,000.

2. Actual manufacturing overhead for the month was $67,000.

3. Manufacturing overhead applied to Work in Process for the month was $67,000.

4. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $57,000.

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Accounting Basics: Closing of the overapplied or underapplied balance
Reference No:- TGS090978

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