Using the Following Information Assuming Underapplied Overhead Is Considered Material, Using the Preferred Method

question 16

Multiple Choice

Using the following information: $$\begin{array} { | l | l | } \hline \text { Cost of Goods Sold for the year } & \$ 840,000 \\\hline \text { Ending Finished Goods } & \$ 100,000 \\\hline \text { Ending Work in Process } & \$ 60,000 \\\hline \text { Underapplied manufacturing overhead } & \$ 40,000 \\\hline\end{array}$$ Assuming underapplied overhead is considered material, using the preferred method, what would be the adjustment to Cost of Goods Sold to close the underapplied overhead?

• A)A credit of $33,600.
• B)A debit of $40,000.
• C)A credit of $40,000.
• D)A debit of $33,600.

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Definitions:

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Lack of Status

The absence or deficiency of recognition and respect from society or a particular social group.

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A theory in sociology and criminology that explains an individual's bond to society prevents them from engaging in antisocial behavior.