Rhythmic Co Ltd applies overhead based on machine hours at $10.00 per machine hour. During the year,
Question:
Rhythmic Co Ltd applies overhead based on machine hours at $10.00 per machine hour. During the year, actual machine hours amounted to 9,500, actual overhead amounted to $101,500 and budgeted overhead was $100,000. The journal entry to close the Manufacturing Overhead account to Cost of Goods Sold would be:
A. Cost of Goods Sold $1,500
Manufacturing Overhead $1,500
B. Manufacturing Overhead $1,500
Cost of Goods Sold $1,500
C. Manufacturing Overhead $5,000
Cost of Goods Sold $5,000
D. Manufacturing Overhead $6,500
Cost of Goods Sold $6,500
E*. Cost of Goods Sold $6,560
Manufacturing Overhead $6,500
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin