Molano Corporation Has Provided the Following Data Concerning Manufacturing Overhead

question 3

Multiple Choice

Molano Corporation has provided the following data concerning manufacturing overhead for June: $\begin{array}{llcc} \text { Actual manufacturing overhead incurred } &\$69,000 \\\text { Manufacturing overhead applied to Work in Process } &\$76,000\end{array}$

The company's Cost of Goods Sold was $255,000 prior to closing out its Manufacturing Overhead account.The company closes out its Manufacturing Overhead account to Cost of Goods Sold.Which of the following statements is true?

• A)Manufacturing overhead was underapplied by $7,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $248,000
• B)Manufacturing overhead was overapplied by $7,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $248,000
• C)Manufacturing overhead was underapplied by $7,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $262,000
• D)Manufacturing overhead was overapplied by $7,000;Cost of Goods Sold after closing out the Manufacturing Overhead account is $262,000

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Definitions:

Purchasing Process

A series of steps taken by organizations to acquire goods or services, typically including identification of needs, selection of suppliers, negotiation, and payment.

Industrywide Standards

Established norms or criteria within an industry that ensure quality, compatibility, and interoperability among products or services.

Baseline Metrics

Fundamental measurements or standards used for comparison or as a starting point to assess performance over time.

Supply Performance

Evaluation of how effectively and efficiently a company's supply chain operates, often focusing on delivery, quality, and cost metrics.