Question
At the end of the period, the Manufacturing Overhead account had a $5,000 credit balance. The balances in the Work in Process Inventory, Finished Goods
At the end of the period, the Manufacturing Overhead account had a $5,000 credit balance. The balances in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold were $5,000, $30,000, and $65,000, respectively. Assuming that the balance in Manufacturing Overhead is considered material, which of the following is part of the journal entry to close the Manufacturing Overhead account at the end of the period?
| A. | A $5,000 debit to Finished Goods Inventory. | |
| B. | Debits to Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold for $250, $1,500, and $3,250, respectively. | |
| C. | Debits to Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold for $1,667, each (one for $1,666) | |
| D. | Credits to Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold for $250, $1,500, and $3,250, respectively. |
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Auditors Guide To IT Auditing Software Demo
Authors: Richard E. Cascarino
2nd Edition
1118147618, 978-1118147610
