Assume There Is $2,000 of Overapplied Fixed Overhead, Which Is

question 123

Short Answer

Assume there is $2,000 of overapplied fixed overhead, which is to be prorated. Current balances of selected accounts are: $$\begin{array} { l l } \text { Work in process } & \$ 15,000 \\\text { Finished goods } & 25,000 \\\text { Cost of goods sold } & 60,000\end{array}$$ The adjusting journal entry is: a) Overapplied fixed overhead $\quad$$\quad$ 2,000
$\begin{array}{lr}\text { Work in process } & 300 \\\text { Finished goods } & 500 \\\text { Cost of goods sold } & 1,200\end{array}$

$\begin{array}{lr}\text { b) Work in process } & 300 \\\text { Finished goods } & 500 \\\text { Cost of goods sold } & 1,200\\\text { Overapplied fixed overhead }&2,000\end{array}$

$\begin{array}{lr}\text { c) Fixed overhead control } & 2,000 \\\text { Work in process } & 300 \\\text { Finished goods } & 500 \\\text { Cost of goods sold } & 1,200\end{array}$

$\begin{array}{lr}\text { d) Work in process } & 300 \\\text { Finished goods } & 500 \\\text { Cost of goods sold } & 1,200\\\text { Fixed overhead allocated }&2,000\end{array}$

---

Definitions:

Federal Independent Agencies

Agencies that exist outside of the federal executive departments (those headed by a Cabinet secretary) and are designed to enforce and regulate specific matters.

Board of Commissioners

A group of elected or appointed members who oversee the administrative and legislative functions of a county or local government.

Issuing Permits

The administrative process of granting official permission for activities that are regulated, such as construction or business operations.

Conducting Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.