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

question 2

Multiple Choice

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

Fallopian Tubes

Tubes that carry eggs from the ovaries to the uterus; the site where fertilization usually occurs.

Sperm

Male reproductive cells or gametes involved in sexual reproduction, tasked with fertilizing an ovum.

Cervix

The bottom segment of the uterus which links to the vagina, acting as a vital component in reproductive wellbeing and the delivery of a baby.

Amnion

A thin membrane forming a closed sac around the embryo and fetus, containing the amniotic fluid which provides a protective environment.