Ivory Company uses a job-order costing system.What year-end journal entry could Ivory make to dispose of (close out)$4,150 of overapplied manufacturing overhead cost?
A) $\begin{array}{llcc}
\text { Finished Goods} &\$4,150 \
\text {Manufacturing Overhead }&&\$4,150
\end{array}$

B) $\begin{array}{llcc}
\text { Cost of Goods Sold} &\$4,150 \
\text {Manufacturing Overhead }&&\$4,150
\end{array}$

C) $\begin{array}{llcc}
\text { Manufacturing Overhead} &\$4,150 \
\text { Finished Goods }&&\$4,150
\end{array}$

D) $\begin{array}{llcc}
\text { Manufacturing Overhead} &\$4,150 \
\text { Cost of Goods Sold }&&\$4,150
\end{array}$

Question

Ivory Company uses a job-order costing system.What year-end journal entry could Ivory make to dispose of (close out)$4,150 of overapplied manufacturing overhead cost?
A) $\begin{array}{llcc}
  \text {  Finished Goods} &\$4,150  \
 \text {Manufacturing Overhead  }&&\$4,150
\end{array}$

B) $\begin{array}{llcc}
  \text { Cost of Goods Sold} &\$4,150  \
 \text {Manufacturing Overhead  }&&\$4,150
\end{array}$
 
C) $\begin{array}{llcc}
  \text { Manufacturing Overhead} &\$4,150  \
 \text {   Finished Goods }&&\$4,150
\end{array}$
  
D) $\begin{array}{llcc}
  \text { Manufacturing Overhead} &\$4,150  \
 \text { Cost of Goods Sold }&&\$4,150
\end{array}$

Quizplus · Accepted Answer

The Answer is D

Ivory Company Uses a Job-Order Costing System Finished Goods$4,150Manufacturing Overhead $4,150\begin{array}{llcc} \text { Finished Goods} &\$4,150 \\ \text {Manufacturing Overhead }&&\$4,150\end{array} Finished GoodsManufacturing Overhead ​$4,150​$4,150​

Ivory Company Uses a Job-Order Costing System $\begin{array}{llcc} \text { Finished Goods} &\$4,150 \\ \text {Manufacturing Overhead }&&\$4,150\end{array}$