If Manufacturing Overhead Has Been Overapplied During the Year the Adjusting

question 130

Multiple Choice

If manufacturing overhead has been overapplied during the year the adjusting entry at the end of the year will show a

• A) debit to Manufacturing Overhead.
• B) credit to Finished Goods Inventory
• C) debit to Cost of Goods Sold.
• D) credit to Work in Process Inventory.

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Definitions:

Discount Rate

This is the rate of interest utilized in the process of discounted cash flow analysis to calculate the current value of future cash flows.

Received

Amounts of money or assets that have been taken in by an individual or organization.

Years

Units of time measuring the duration or length of events or intervals typically consisting of 365.25 days in the Gregorian calendar.

Future Value

The value of a current asset at a specified date in the future based on an assumed rate of growth over time.