Manufacturing overhead applied	$	150,000
Actual amount of manufacturing overhead costs		120,000
Amount of overhead applied during the year that is in:
Work in Process	$	37,500	25	%
Finished Goods		52,500	35	%
Cost of Goods Sold		60,000	40	%
Total overhead applied	$	150,000	100	%

Knowledge Check 01

If the Manufacturing Overhead account is closed to Cost of Goods Sold, the related entry will ________.

• decrease the cost of goods sold by $30,000

• increase the cost of goods sold by $30,000

• decrease the cost of goods sold by $150,000

• increase the cost of goods sold by $150,000

Knowledge Check 02

If the Manufacturing Overhead account is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold, the related entry will include a ________.

• debit to Cost of Goods Sold for $12,000

• credit to Cost of Goods Sold for $12,000

• credit to Cost of Goods Sold for $30,000

• debit to Work in Process for $7,500