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? 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. Ob. Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold. Oc. None of given answer is correct. Od. 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. The balance in the Work-in-Process account after allocation will be the same under e ther method.

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? 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. Ob. Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold. Oc. None of given answer is correct. Od. 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. The balance in the Work-in-Process account after allocation will be the same under e ther method.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 12E: a. Based on the data in Exercise 17-11, determine the following: 1. Cost of beginning work in...

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In determining the costs transferred to a third department from a second department, are the costs from a first department considered? Are they considered in the computation of the ending work in process in the second department?
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.
Which of the following is correct with respect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory Finished Goods Inventory, and Cost of Goods Sold? Oa Cost of Goods Sold will be lower if the underapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. balance in the Work- in-Process account after allocation will be the same under either method. None of given answer is correct. d. Operating income will be higher if all of the underapplied overhead is closed out to Cost of Goods Sold. e. The balance in the Work-in-Process account after allocation will be lower if the underapplied overhead is closed out by allocating it to all appropriate accounts.
Which of the following is correct with respect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work- in-Process Inventory Finished Goods Inventoryand Cost of Goods Sold? a Cost of Goods Sold will be lower if the underapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. The balance in the Work-in Process account after allocation will be the same under either method None of given answer is correct. d Operating income will be higher if all of the underapplied overhead is closed out to Cost of Goods Sold. e. The balance in the Work-in-Process account after allocation will be lower if the underapplied overhead is closed out by allocating it to all appropriate accounts.
For ABC Company, the most common treatment of under- or overapplied factory overhead is to close it to; a.Work in process. b.Cost of goods sold. c.Finished goods. d.Retained Earnings
When the amount of overapplied factory overhead is significant, the entry to close overapplied Factory Overhead will most likely require: a. A debit to Cost of Goods Sold b. Credits to Cost of Goods Sold, Finished Goods Inventory, and Work in Process Inventory c. Debits to Cost of Goods Sold, Finished Goods Inventory, and Work in Process Inventory d. A credit to Cost of Goods Sold
Underapplied factory overhead related to a significant decrease in production should be charged to a. Finished Goods Inventory b. Work in Process Inventory, Finished Goods Inventory, and Cost of Goods c. Work in Process Inventory and Finished Goods Inventory d. Cost of Goods Sold
The most common treatment of under- or overapplied factory overhead is to close it to Retained Earnings Cost of goods sold Finished goods Work in process
If, at the end of the year, Manufacturing Overhead has been over applied, it means that: * actual overhead costs were greater than the overhead assigned to jobs. overhead has not been applied to jobs still in process. cost of goods will have to be increased by the amount of the over applied overhead. None of the above
Poulenc plc. uses direct labour cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company misclassified a portion of direct labour cost as indirect labour. The effect of this misclassification will be to: a) understate the predetermined overhead rate. b) have no effect on the predetermined overhead rate. c) cannot be determined from the information given. d) overstate the predetermined overhead rate.
In a job order cost system, a decrease to Manufacturing Overhead will be accompanied by an increase to Cost of Goods Manufactured. Finished Goods Inventory. Work in Process Inventory. Raw Materials Inventory. Work in process inventory is correct but I do not understand why. Why wouldn't we increase cost of goods manufactured? Is it b/c it's not the same as COGS? And we don't know if the products are exactly sold yet, so we put them into WIP (from raw materials)?
Which of the following is not true about the manufacturing overhead ledger account? Group of answer choices Manufacturing overhead ledger account is debited to record the manufacturing overhead cost incurred during a period. The difference between the actual and allocated manufacturing overhead costs must be adjusted at the end of the period in order to close the account. Manufacturing overhead is a permanent account. Manufacturing overhead ledger account is credited to record the allocation of manufacturing overhead cost to the production process.