“12. The operations of the Kerry Company resulted in underapplied overhead of $5,000. The entry to close out this balance and the effect of the underapplied overhead on cost of goods sold would be Effect on Cost Entry of Goods Sold a. Manufacturing Overhead 5,000 Deduct $5,000 Cost of Goods Sold 5,000 b. Cost of Goods Sold 5,000 Deduct $5,000 Manufacturing Overhead 5,000 c. Cost of Goods Sold 5,000 Add $5,000 Manufacturing Overhead 5,000 d. Manufacturing Overhead 5,000 Add $5,000 Cost of Goods Sold 5,000”

June 20, 2017 mfadmin Managerial Accounting

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“12. The operations of the Kerry Company resulted in underapplied overhead of $5,000. The entry to close out this balance and the effect of the underapplied overhead on cost of goods sold would be Effect on Cost Entry of Goods Sold a. Manufacturing Overhead 5,000 Deduct $5,000 Cost of Goods Sold 5,000 b. Cost of Goods Sold 5,000 Deduct $5,000 Manufacturing Overhead 5,000 c. Cost of Goods Sold 5,000 Add $5,000 Manufacturing Overhead 5,000 d. Manufacturing Overhead 5,000 Add $5,000 Cost of Goods Sold 5,000”