It was determined that the overhead on a job was overapplied by $5,000. Based on completion...

 

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It was determined that the overhead on a job was overapplied by $5,000. Based on completion and sale of items on the job order, the allocation of that overhead is currently at 30% in Cost of goods sold, 45% in Finished goods, and 25% in WIP. The entry to correct this error will result in a(n): a. Increase to the Manufacturing Overhead account of $1,500 b. Increase to the Finished Goods account of $2,250 c. Reduction to the Cost of Goods Sold account of $5,000 d. Reduction to the Work in Process account of $1,250 It was determined that the overhead on a job was overapplied by $5,000. Based on completion and sale of items on the job order, the allocation of that overhead is currently at 30% in Cost of goods sold, 45% in Finished goods, and 25% in WIP. The entry to correct this error will result in a(n): a. Increase to the Manufacturing Overhead account of $1,500 b. Increase to the Finished Goods account of $2,250 c. Reduction to the Cost of Goods Sold account of $5,000 d. Reduction to the Work in Process account of $1,250

Answer rating: 100% (QA)

To correct the overapplied overhead of 5000 we need to adjust the accounts based on t... View the full answer