Account balances are as follows: If underapplied or overapplied overhead is material and is allocated to Work in Process, Finished Goods, and Cost of Goods Sold (based on ending account balances), Cost of Goods Sold after adjustment would have a balance of
A) $1,440,000.
B) $ 640,000.
C) $1,040,000.
D) $ 960,000.

Question

Account balances are as follows:  If underapplied or overapplied overhead is material and is allocated to Work in Process, Finished Goods, and Cost of Goods Sold (based on ending account balances), Cost of Goods Sold after adjustment would have a balance of
A) $1,440,000. 
B) $ 640,000. 
C) $1,040,000. 
D) $ 960,000.

Quizplus · Accepted Answer

The Answer of Account balances are as follows:  If underapplied or overapplied overhead is material and is allocated to Work in Process, Finished Goods, and Cost of Goods Sold (based on ending account balances), Cost of Goods Sold after adjustment would have a balance of
A) $1,440,000. 
B) $ 640,000. 
C) $1,040,000. 
D) $ 960,000.

Account Balances Are as Follows: If Underapplied or Overapplied