Matthias Corporation has provided data concerning the Corporation\'s Manufacturi
ID: 2336041 • Letter: M
Question
Matthias Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of May. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $68,000 and the total of the credits to the account was $99,000. Which of the following statements is true? Multiple Choice Manufacturing overhead applied to Work In Process for the month was $99,000. Manufacturing overhead for the month was underapplied by $31,000. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $68,000. overhead Incurred during the month was $99,000Explanation / Answer
In a Manufacturing overhead account Actual Manufacturing costs are debited and applied manufacturing costs are credited.
If, debit > credit = under applied and
If credit> debit = over applied
In the present case debit to the Manufacturing overhead account was $ 68,000 and credit was by $ 99,000.
By analyzing the above data the correct answer is option A : Manufacturing overhead applied to the Work in process for the month is $ 99,000.