At the End of the Year, Metro Company Has an Unadjusted

question 34

Multiple Choice

At the end of the year, Metro Company has an unadjusted credit balance in the Manufacturing Overhead account of $950. Which of the following is the year-end adjusting entry needed to clear the balance to zero?

• A)debit Cost of Goods Sold $950, credit Finished Goods Inventory $950
• B)debit Manufacturing Overhead $950, credit Finished Goods Inventory $950
• C)debit Manufacturing Overhead $950, credit Cost of Goods Sold $950
• D)debit Cost of Goods Sold $950, credit Manufacturing Overhead $950

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Definitions:

Economic Profits

The excess of total revenues over total costs, including both explicit and implicit costs.

Perfectly Competitive

Describes a market structure where numerous small firms compete against each other, and products are considered perfect substitutes.

Average Rate

A mathematical mean or typical value of a set of rates, often used in reference to interest rates, pricing, or other financial statistics.

Market Demand

The total quantity of a product or service that is desired by all potential consumers in a market at various price levels.