While in the Process of Posting from the Journal to the Ledger,a

question 149

Multiple Choice

While in the process of posting from the journal to the ledger,a company failed to post a $500 debit to the Equipment account.The effect of this error will be that:

• A)The Equipment account balance will be overstated.
• B)The trial balance will not balance.
• C)The error will overstate the debits listed in the journal.
• D)The total debits in the trial balance will be larger than the total credits.
• E)The error will overstate the credits listed in the journal.

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Definitions:

Underapplied Manufacturing Overhead

Refers to the situation when the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Manufacturing Overhead Control

A way of monitoring and managing the costs associated with the indirect elements of production, such as utilities, maintenance, and factory supplies.

Overhead Costs

All costs on the income statement except for direct labor, direct materials, and direct expenses, covering expenses like rent, utilities, and insurance.

Volume of Units

The total number of individual units produced or sold by a business in a specified period.