Overapplied or underapplied balance to cost of goods sold


Danoff Corporation has provided data concerning the company's Manufacturing Overhead account for the month of October. 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 $68,000 and the total of the credits to the account was $77,000. Which of the following statements is true?

Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $68,000.

Manufacturing overhead for the month was overapplied by $9,000.

Actual manufacturing overhead incurred during the month was $77,000.

Manufacturing overhead applied to Work in Process for the month was $68,000.

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Accounting Basics: Overapplied or underapplied balance to cost of goods sold
Reference No:- TGS072297

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