Ringgold Company Experienced an Event That Affected Its Financial Statements

question 16

Multiple Choice

Ringgold Company experienced an event that affected its financial statements as indicated below: $\begin{array}{|c|c|c|c|c|c|c|c|c|c|c|c|}\hline & \text { Assets }&&= & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \\\hline \text { Mfg. } & + & \text { WIP } & & & & & & & & \\\text { OH }& &\text { Inv. }\\\hline (1,200) & + & (1,200) &= & \mathrm{n} / \mathbf{a} & +&\mathrm{n} / \mathrm{a} & \mathrm{n} / \mathrm{a} & -&\mathrm{n} / \mathrm{a} & = & \mathrm{n} / \mathrm{a} \\\hline\end{array}$ Which of the following accounting events caused the indicated effects on the company's accounting equation?

• A) Actual overhead cost was incurred
• B) Underapplied overhead was written off
• C) Estimated overhead was charged to production
• D) None of these.

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