Smallwood Corporation Has Provided the Following Data Concerning Manufacturing Overhead

question 43

Multiple Choice

Smallwood Corporation has provided the following data concerning manufacturing overhead for January: The Corporation's Cost of Goods Sold was $223,000 prior to closing out its Manufacturing Overhead account.The Corporation closes out its Manufacturing Overhead account to Cost of Goods Sold.Which of the following statements is true?

• A)Manufacturing overhead for the month was overapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $228,000
• B)Manufacturing overhead for the month was underapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $218,000
• C)Manufacturing overhead for the month was underapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $228,000
• D)Manufacturing overhead for the month was overapplied by $5,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $218,000

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