At the End of the Year, Martin Company Has a Preliminary

question 9

Multiple Choice

At the end of the year, Martin Company has a preliminary credit balance in the Manufacturing overhead account of $95. Which of the following is the year-end adjusting entry needed to clear the balance to zero?

• A) Debit Cost of goods sold $95, credit Finished goods inventory $95
• B) Debit Manufacturing overhead $95, credit Finished goods inventory $95
• C) Debit Manufacturing overhead $95, credit Cost of goods sold $95
• D) Debit Cost of goods sold $95, credit Manufacturing overhead $95

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Definitions:

Snapshot

A detailed view or representation of something at a particular moment in time.

Period of Time

A specific duration during which an event occurs or a condition remains in effect.

Cash Flows

The aggregated volume of money transactions both incoming and outgoing in a firm, markedly influencing its ability to provide liquidity.

Impairment Loss

The decrease in an asset’s net carrying value that exceeds the future undisclosed cash flow it should generate.