Total budgeted manufacturing overhead flows to the
A)ending inventory and cost of goods sold budget.
B)production budget.
C)cash budget.
D)the cost of goods sold budget.

Question

Quizplus · Accepted Answer

Total budgeted manufacturing overhead is allocated to individual products based on predetermined overhead rates. This allocation results in part of the manufacturing overhead cost being included in the ending inventory value and the remainder being included in the cost of goods sold. Therefore, total budgeted manufacturing overhead flows to the ending inventory and cost of goods sold budget.

Total Budgeted Manufacturing Overhead Flows to the