At the End of the Year,Metro,Inc

question 60

Multiple Choice

At the end of the year,Metro,Inc.has an unadjusted credit balance in the Manufacturing Overhead account of $750.Which of the following is the year-end adjusting entry needed to adjust the account?

• A) A debit to Cost of Goods Sold of $750 and a credit to Finished Goods Inventory of $750
• B) A debit to Manufacturing Overhead of $750 and a credit to Finished Goods Inventory of $750
• C) A debit to Manufacturing Overhead of $750 and a credit to Cost of Goods Sold of $750
• D) A debit to Cost of Goods Sold of $750 and a credit to Manufacturing Overhead of $750

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Definitions:

LIFO

Last In, First Out; an inventory valuation method where the last items placed in inventory are the first ones to be used or sold.

Ending Inventory

The total value of a business’s merchandise, raw materials, and products not yet sold at the end of an accounting period.

FIFO

"First In, First Out," an inventory valuation method where goods first acquired are the first to be sold, used in accounting to calculate the cost of goods sold.

Net Income

The profit of a company after all expenses and taxes have been subtracted from total revenue.