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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