Faughn Corporation Has Provided the Following Data Concerning Manufacturing Overhead

question 124

Multiple Choice

Faughn Corporation has provided the following data concerning manufacturing overhead for July: The company's Cost of Goods Sold was $243,000 prior to closing out its Manufacturing Overhead account.The company closes out its Manufacturing Overhead account to Cost of Goods Sold.Which of the following statements is true?

• A)Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
• B)Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $233,000
• C)Manufacturing overhead was overapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000
• D)Manufacturing overhead was underapplied by $10,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $253,000

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Definitions:

Embolus

A blood clot, air bubble, piece of fatty deposit, or other object that has been carried in the bloodstream to lodge in a vessel and cause an embolism.

Prostacyclin

A potent vasodilator and inhibitor of platelet aggregation produced by the endothelial cells of blood vessels.

Fibrinogen

A soluble plasma protein that is converted into fibrin during blood clotting, playing a critical role in wound healing.

Fibrin

A protein formed during blood clotting that is essential for wound healing, creating a fibrous mesh that impedes blood flow.