At the End of the Year, Harding Company Had a Balance

question 48

Multiple Choice

At the end of the year, Harding Company had a balance in Manufacturing Overhead of $26,000, and a balance in Manufacturing Overhead Applied of $23,000. When the Manufacturing Overhead account is closed, the Cost of Goods Sold account will:

• A)Increase by $3,000.
• B)Decrease by $3,000.
• C)not be affected.
• D)be closed to Manufacturing Overhead Applied.

Comprehend the accumulation and assignment of product costs in a process cost system.

Learn the concept of equivalent units and their role in assigning costs in process costing.

Recognize the structure and components of a cost of production report.

Understand the flow of costs in process costing, including movements between work in process accounts.

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Definitions:

Formal Operational

A stage in Piaget's theory of cognitive development, where individuals are able to think abstractly, logically, and systematically.

Egocentrism

In psychology, the inability to differentiate between one's own perspective and another person's perspective.

Piaget

A Swiss psychologist known for his pioneering work in developmental psychology, especially his theory of cognitive development in children.

Object Permanence

The cognition that objects still exist even when they are no longer perceivable through sight, hearing, or other senses.