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Because the Goulburn Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200 000) was different from the actual amount incurred

Because the Goulburn Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200 000) was different from the actual amount incurred ($225 000). Ending balances in the relevant accounts are: Work in process $10 000 Finished goods 20 000 Cost of goods sold 170 000 What is the journal entry used to write off the difference between allocated and actual overhead using the proration approach?

A.

Manufacturing Overhead Control 225 000 Work-in-Process Control 1250 Finished Goods Control 2500 Cost of Goods Sold 21 250 Manufacturing Overhead Allocated 200 000

B.

Manufacturing Overhead Allocated 200 000 Work-in-Process Control 10 000 Finished Goods Control 20 000 Manufacturing Overhead Control 230 000

C.

Manufacturing Overhead Allocated 225 000 Work-in-Process Control 1250 Finished Goods Control 2500 Cost of Goods Sold 21 250 Manufacturing Overhead Control 200 000

D.

Manufacturing Overhead Allocated 200 000 Work-in-Process Control 1250 Finished Goods Control 2500 Cost of Goods Sold 21 250 Manufacturing Overhead Control 225 000

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