Which of the following is correct with respect to closing outunderapplied manufacturing overhead to Cost of Goods Soldversus closing it out to Work-in-Process Inventory, Finished GoodsInventory, and Cost of Goods Sold?Select one:O a. The balance in the Work-in-Process account after allocationwill be higher if the underapplied overhead is closed out byallocating it to all appropriate accounts.O b. Cost of Goods Sold will be higher if the underappliedoverhead is closed out by allocating it to the inventory accountsas well as to Cost of Goods Sold.Oc. None of given ANSWER is correct.O d. Operating income will be higher if all of the underappliedoverhead is closed out to Cost of Goods Sold.O e. The balance in the Work-in-Process account after allocationwill be the same under either method.

The cost of goods sold would lower if the overapplied overhead is closed to cost of goods sold…

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?

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?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 17MC: Under absorption costing, a unit of product includes which costs? A. direct material, direct labor,...

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

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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?
Select one:
O a. The balance in the Work-in-Process account after allocation
will be higher if the underapplied overhead is closed out by
allocating it to all appropriate accounts.
O b. Cost of Goods Sold will be higher if the underapplied
overhead is closed out by allocating it to the inventory accounts
as well as to Cost of Goods Sold.
Oc. None of given ANSWER is correct.
O d. Operating income will be higher if all of the underapplied
overhead is closed out to Cost of Goods Sold.
O e. The balance in the Work-in-Process account after allocation
will be the same under either method.

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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? Select one: O a. None of given ANSWER is correct. O b. 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. O c. The balance in the Work-in-Process account after allocation will be the same under either method. O d. Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold. O e. 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.
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.