When Using the Proration Approach the Final Balance in the Manufacturing

question 1

Multiple Choice

When using the proration approach the final balance in the Manufacturing Overhead Control account can be closed to which account(s) at year-end?

• A)Work-in-Process Control
• B)Income Summary
• C)Finished Goods Inventory
• D)Cost of Goods Sold
• E)Work-in-Process Control, Finished Goods Inventory or Cost of Goods Sold would normally be used.

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Definitions:

No-Par

Refers to stocks issued without a par value, meaning the stock's value is not set and can be determined by the company's board of directors.

Stated Value

A specified value assigned to no-par-value stock by the company's board of directors.

General Journal

A comprehensive accounting record where all financial transactions are initially recorded, using a double-entry accounting system.

Nonparticipating

typically refers to an insurance or investment product feature where the holder does not have the right to receive dividends or bonuses generated from the underlying pool of assets.