At the end of the year, a company finds that it has under-applied factory overhead by $1,000. What would be the most common accounting treatment in this case?

Multiple Choice

a) Increase Assets by $1,000 on the Balance Sheet

Watson Corporation has provided the following data concerning its finished goods inventories last month:

Beginning finished goods inventory.......$110,000

Cost of goods manufactured.......$760,000

Ending finished goods inventory.......$70,000

The cost of goods sold for the month for Watson Corporation was

Multiple Choice

• $800,000

• $720,000

• $950,000

• $110,000

• $280,000

b) Increase Cost of Goods Sold by $1,000 in the Income Statement.

c) Increase Liabilities by $1,000 on the Balance Sheet

d)Increase Profit by $1,000 in the Income Statement

e) Decrease Cost of Goods Sold by $1,000 in the Income Statement