Crowl, Inc

question 13

Multiple Choice

Crowl, Inc.determined that $200,000 of manufacturing overhead was over-applied at the end of the year.If the amount is material, to which accounts should this amount be allocated at the end of the year?

• A)Raw materials inventory, work in process inventory, and cost of goods sold
• B)Finished goods inventory, work in process inventory, and cost of goods sold
• C)Cost of goods sold only
• D)Work in process inventory only

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Definitions:

Interest

The cost paid by a borrower for the use of borrowed money, or the income earned by an investor on their investment.

Inventory

The total amount of goods and materials held in stock by a business, intended for sale or production purposes.

Opportunity Cost

The cost of the next best alternative foregone as the result of making a decision.

Investment Project

A project undertaken by individuals, firms, or governments involving the allocation of resources to create future benefits, such as income or profit.