Question 16 1 Point Assume that a company closes out any manufacturing overhead overapplied or underapplied to cost of goods sold. Related to the Cost of Goods Sold, which of the following statements is true? 1. In the Schedule of Cost of Goods Sold, the Adjusted cost of goods sold - Unadjusted cost of goods sold + Overapplied overhead - Underapplied overhead. 2. Cost of Goods Sold will be debited if manufacturing overhead is overapplied for the period. (A) Only statement I is true. Neither statement is true. Both statements I and II are true. Only statement II is true.