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:

Google

A multinational technology company that specializes in Internet-related services and products, including search engines, advertising technology, and cloud computing.

Influenced

Being affected or changed by something else, often in the context of ideas, decisions, or behavior.

Legal Terms

Language and vocabulary that is specifically used within the field of law.

Eye Contact

Direct visual engagement with another person's eyes, considered an important aspect of nonverbal communication and often indicating attentiveness or honesty.