The actual manufacturing overhead incurred at Gutekunst Corporation during March
ID: 2336224 • Letter: T
Question
The actual manufacturing overhead incurred at Gutekunst Corporation during March was $53,000, while the manufacturing overhead applied to Work in Process was $73,000. The Corporation's Cost of Goods Sold was $451,000 prior to closing out its Manufacturing Overhead account. The Corporation closes out its Manufacturing Overhead account to Cost of Goods Sold. Which 30 0105:10of the following statements is true? Multiple Choice Manufacturing overhead was overapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $471,000 Manufacturing overhead was overapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $431,000 Manufacturing overhead was underapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $431,000 Manufacturing overhead was underapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $471,000Explanation / Answer
Actual manufacturing overhead = $53,000
Manufacturing overhead applied = $73,000
Manufacturing overhead over applied = Manufacturing overhead applied - Actual manufacturing overhead
= 73,000 - 53,000
= $20,000
Cost of goods sold prior to closing of manufacturing overhead account = $451,000
Hence, cost of goods sold after closing out to manufacturing overhead account = Cost of goods sold prior to closing of manufacturing overhead account - Manufacturing overhead over applied
= 451,000 - 20,000
= $431,000
Hence,correct option is (b)
Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubts. Thanks.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.