10- A company debits overhead applied account, debits cost of goods sold account and credits overhead costs account. Why? This is a wrong entry The company closes the applied accounts with the relevant cost account while selling a product. The company is accounting for the normal capacity variance while closing the applied and cost accounts. The company is adjusting the cost of goods sold account due to a damage in the production process. O Dier BONUS QUESTION: Refer to Question 4 above. Suppose that on April 12, the company sends back 3.000 kg of Y raw material to the supplier due to low standards and on April 18, 2.000 kg of the Y raw materials was returned (iade) from the production department due to damage. Now what would be the cost of consumption at the end of the month if the company uses FIFO? (Once again, use your logic!) Yantnz 10- A company debits overhead applied account, debits cost of goods sold account and credits overhead costs account. Why? This is a wrong entry The company closes the applied accounts with the relevant cost account while selling a product. The company is accounting for the normal capacity variance while closing the applied and cost accounts. The company is adjusting the cost of goods sold account due to a damage in the production process. O Dier BONUS QUESTION: Refer to Question 4 above. Suppose that on April 12, the company sends back 3.000 kg of Y raw material to the supplier due to low standards and on April 18, 2.000 kg of the Y raw materials was returned (iade) from the production department due to damage. Now what would be the cost of consumption at the end of the month if the company uses FIFO? (Once again, use your logic!) Yantnz