At December 31, balances in Manufacturing Overhead are Shimeca Company $1,200 positive, Garcia Company$900 negative. Assuming the

Question:

At December 31, balances in Manufacturing Overhead are Shimeca Company— $1,200 positive, Garcia Company—$900 negative. Assuming the December 31 adjustment is made to cost of goods sold, indicate the effect that each company’s adjustment has on its cost of goods sold.