mcqsWhich of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? aThe balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out by allocating it to all appropriate accounts. bCost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. cOperating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold. dThe balance in the Work-in-Process account after allocation will be the same under either method.

Manufacturing overhead means the cost which is indirectly related with the production . It has to be…

Answered: mcqs Which of the following is correct…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 29E: Consider the information given on two products and their usage of two overhead activities (setups...

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mcqs

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold?

	a	The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out by allocating it to all appropriate accounts.
	b	Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold.
	c	Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold.
	d	The balance in the Work-in-Process account after allocation will be the same under either method.

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