Account Balances Are as Follows If Underapplied or Overapplied Overhead Is Material and Is Allocated

question 22

Multiple Choice

Account balances are as follows: $\begin{array}{lc}\text { Manufacturing overhead } & \$ 240,000 \text { underapplied } \\\text { Work in process } & 100,000 \\\text { Finished goods } & 300,000 \\\text { Cost of goods sold } & 800,000\end{array}$
If underapplied or overapplied overhead is material and is allocated to work in process,finished goods,and cost of goods sold (based on ending account balances) ,what would be the balance of cost of goods sold after adjustment?

• A)$640,000
• B)$960,000
• C)$1,040,000
• D)$1,440,000

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Definitions:

Émile Durkheim

A French sociologist, one of the founding figures of sociology, known for his studies on social solidarity, religion, and the division of labor in society.

Stanley Cup

The championship trophy awarded annually to the National Hockey League (NHL) playoff winner.

Collective Effervescence

A concept in sociology describing the sense of energy and harmony people feel when they come together in a group for a shared purpose.

Collective Conscience

a term coined by Emile Durkheim to describe the set of shared beliefs, ideas, and moral attitudes which operate as a unifying force within society.