When Closing Overapplied Manufacturing Overhead to Cost of Goods Sold

question 34

Multiple Choice

When closing overapplied manufacturing overhead to cost of goods sold, which of the following would be true?

• A) Work in process will decrease.
• B) Cost of goods sold will increase.
• C) Net income will decrease.
• D) Gross margin will increase.

---

Definitions:

Department Of Justice

The U.S. federal executive department responsible for the enforcement of the law and administration of justice.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other related activities.

Criminal Violations

Criminal violations are actions or conduct that break the law and are punishable by the state, including both misdemeanors and felonies.

Prefiling Period

The timeframe before an official document or lawsuit is formally filed in court.