At the end of the period, the Manufacturing Overhead account had a $21,000 debit balance.The balances in the Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold were $10,000, $20,000, and $70,000, respectively.Assuming that the balance in Manufacturing Overhead is considered immaterial, which of the following is a part of the journal entry to close the Manufacturing Overhead account at the end of the period?

Question

Quizplus · Accepted Answer

Since the balance in Manufacturing Overhead is considered immaterial, it can be closed directly to Cost of Goods Sold with a debit entry equal to its balance of $21,000. This would increase the expense in Cost of Goods Sold, reducing net income for the period. Option A is the only choice that reflects this treatment.

At the End of the Period, the Manufacturing Overhead Account