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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Preferred Provider Organization

A type of health insurance plan that offers a network of healthcare providers for more cost-effective medical care.

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