Account Balances from the Boilermakers Company Are as Follows If Underapplied or Overapplied Overhead Is Material and Is Allocated

question 28

Multiple Choice

Account balances from the Boilermakers Company are as follows: $\begin{array}{lr}\text { Manufacturing Overhead } & \$ 240,000 \text { underapplied } \\\text { Work in Frocess } & 100,000 \\\text { Finished Goods } & 300,000 \\\text { Cost of Goods Sold } & 800,000\end{array}$
If underapplied or overapplied overhead is material and is allocated to Work in Process, Finished Goods, and Cost of Goods Sold (based on ending account balances) , Cost of Goods Sold after adjustment would have a balance of

• A)$ 960,000.
• B)$ 640,000.
• C)$1,040,000.
• D)$1,440,000.

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