The Entry to Dispose of the Under or Overapplied Manufacturing

question 76

Multiple Choice

The entry to dispose of the under or overapplied manufacturing overhead cost for the month would include:

• A)a debit of $2,000 to the Manufacturing Overhead account.
• B)a credit of $2,500 to the Manufacturing Overhead account.
• C)a debit of $2,000 to Cost of Goods Sold.
• D)a credit of $2,500 to Cost of Goods SolD.Overhead over or underapplied

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Definitions:

Liability Account

An account recording a company's obligations to pay debts to creditors in the short or long term.

Adjusting Journal Entries

Entries made in accounting records at the end of an accounting period to update accounts for accruals and deferrals that were not recorded during the accounting period.

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life.

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's financial position, including assets, liabilities, and shareholders' equity at a specific point in time.