Question 4 1 pts Vandagriff Corporation has provided data concerning the company's Manufacturing Overhead account for the month of June. 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 $77,000 and the total of the credits to the account was $64,000. Which of the following statements is true as a result of posting a closing entry to manufacturing overhead to balance the account? Cost of goods sold would be decreased and profits would be increased. Cost of goods sold and profits would both be decreased. Cost of goods sold would be increased and profits would be decreased Cost of goods sold and profits would both be increased
Question 4 1 pts Vandagriff Corporation has provided data concerning the company's Manufacturing Overhead account for the month of June. 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 $77,000 and the total of the credits to the account was $64,000. Which of the following statements is true as a result of posting a closing entry to manufacturing overhead to balance the account? Cost of goods sold would be decreased and profits would be increased. Cost of goods sold and profits would both be decreased. Cost of goods sold would be increased and profits would be decreased Cost of goods sold and profits would both be increased
Related questions
Niebla Corporation has provided data concerning the company's Manufacturing Overhead account for the month of July. 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 $72,000 and the total of the credits to the account was $77,000. Which of the following statements is true?
| a. | Manufacturing overhead applied to Work in Process for the month was $72,000. | |
| b. | Actual manufacturing overhead for the month was $72,000. | |
| c. | Manufacturing overhead for the month was underapplied by $5,000. | |
| d. | Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $77,000. |
The following T-accounts represent November activity.
| Materials Inventory | ||||
| EB(11/30) | 57,100 | |||
| Work-In-Process Inventory | ||||
| BB(11/1) | 32,900 | |||
| Dir.Materials | 86,800 | |||
| Finished Goods Inventory | ||||
| EB(11/30) | 101,000 | |||
| Costof Goods Sold | ||||
| Manufacturing Overhead Control | ||||
| Applied Manufacturing Overhead | ||||
| 270,000 | ||||
| WagesPayable | ||||
| SalesRevenue | ||||
| 643,200 | ||||
Additional Data
| (a) | Materials of$113,800 were purchased during the month, and the balance in theMaterials Inventory account increased by $11,300. |
| (b) | Overhead is applied at the rateof 150 percent of direct labor cost. |
| (c) | Sales are billed at 160 percentof cost of goods sold before the over- or underapplied overhead isprorated. |
| (d) | The balance in the FinishedGoods Inventory account decreased by $29,000 during the monthbefore any proration of under- or overapplied overhead. |
| (e) | Total credits to the WagesPayable account amounted to $200,000 for direct and indirectlabor. |
| (f) | Factory depreciation totaled$58,250. |
| (g) | Overhead was underapplied by$26,020. Overhead other than indirect labor, indirect materials,and depreciation was $202,070, which required payment in cash.Underapplied overhead is to be allocated. |
| (h) | The company has decided toallocate 25 percent of underapplied overhead to Work-in-ProcessInventory, 15 percent to Finished Goods Inventory, and the balanceto Cost of Goods Sold. Balances shown in T-accounts are before anyallocation. |
Required:
Complete the T-accounts.
