Which of the Following Is Correct with Respect to Closing

question 99

Multiple Choice

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Cost of Goods Sold and Finished Goods and Work in Process inventories?

• A)The balance in the Work in Process account after allocation will be higher if the overapplied manufacturing overhead is closed out by allocating it to all appropriate accounts.
• B)The balance in the Work in Process account after allocation will be the same under either method.
• C)Net operating income will be higher if all of the overapplied manufacturing overhead is closed out to Cost of Goods Sold.
• D)Cost of Goods Sold will be lower if the overapplied manufacturing overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold.

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Definitions:

Refusal To Pay

The act of deliberately not making a payment that is due, typically in the context of bills, debts, or other financial obligations.

Endorsement

The act of signing one's name on the back of a check or other negotiable document, transferring its legal title or rights to another individual or entity.

Transfer Warranties

Guarantees provided by a seller regarding the legality of transferring ownership of goods.

Transferee

is an individual or entity that receives the transfer of property, rights, or interest from another.