Question $7$

$1$ pts

Toronto Corp. has provided the following data for the month of June.

Manufacturing overhead for the month was underapplied by $$4,500.$ The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. The overhead applied to work in process, finished goods, and cost of goods sold during the month is $$930,$$$7,130,$ and $22,940,$ respectively $($total value of accounts $$31,000).$

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for June would include the following:

credit to Cost of Goods Sold of $$2,220$

debit to Cost of Goods Sold of $$3,330$

debit to Cost of Goods Sold of $$2,220$

credit to Cost of Goods Sold of $$3,330$