Molano Corporation Has Provided the Following Data Concerning Manufacturing Overhead

question 134

Multiple Choice

Molano Corporation has provided the following data concerning manufacturing overhead for June:
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:

Organizing

The process of arranging resources and tasks to achieve objectives efficiently and effectively.

Controlling Project Work

Involves monitoring, comparing, and correcting project progress and performance to ensure that project objectives are met.

Administrative Skill

The ability to efficiently manage operations, administrative tasks, and resources in an organization.

Asynchronous Communication

Communication where interaction does not occur in real-time, allowing participants to engage according to their own schedule.