baylabrown
23.03.2020 •
Business
Bretthauer Corporation has provided data concerning the Corporation'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 $58,000 and the total of the credits to the account was $70,000. Which of the following statements is true?a) Manufacturing overhead applied to Work in Process for the month was $70,000b) Actual manufacturing overhead incurred during the month was $70,000c) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $58,000.d) Manufacturing overhead for the month was underapplied by $12,000
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Ответ:
a) Manufacturing overhead applied to Work in Process for the month was $70,000
Explanation:
Data provided in the question
The total of the Manufacturing Overhead account = $58,000 i.e incurred
And, the total of credit to the account = $70,000 i.e applied amount
So according to the given data, the manufacturing overhead should be applied to the work in process with the total credit amount i.e $70,000
Hence, the first option is correct
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