Figure 4-7 the Cherokee Company Uses a Predetermined Overhead Rate

question 40

Multiple Choice

Figure 4-7 The Cherokee Company uses a predetermined overhead rate. The following accounts have these unadjusted balances:
Refer to Figure 4-7. If overhead is underapplied by $12,000 and considered immaterial, the journal entry would be

• A) Cost of Goods Sold $12,000 Manufacturing overhead $12,000
• B) Manufacturing Overhead $12,000 Cost of Goods Sold $12,000
• C) Raw Materials $2,000 Work in Process $4,000 Finished goods $1,000 Cost of Goods Sold $5,000 Manufacturing Overhead $12,000
• D) Manufacturing Overhead $12,000 Raw Materials $2,000 Work in Process $4,000 Finished goods $1,000 Cost of Goods Sold $5,000
• E) Manufacturing Overhead $12,000 Work in Process $4,800 Finished goods $1,200 Cost of Goods Sold $6,000

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