Daniel Company's manufacturing overhead account showed a $4,500 overallocated balance at the end of 2005. Actual overhead incurred was $95,000. Other accounts showed the following balances:

- What will be the ending balance in cost of goods sold after allocating the proper amount of the manufacturing overhead?

Question

Daniel Company's manufacturing overhead account showed a $4,500 overallocated balance at the end of 2005. Actual overhead incurred was $95,000. Other accounts showed the following balances:

- What will be the ending balance in cost of goods sold after allocating the proper amount of the manufacturing overhead?

Quizplus · Accepted Answer

The correct answer is A because the ending balance in cost of goods sold after allocating the proper amount of the manufacturing overhead is $270,500. This is because the manufacturing overhead is added to the cost of goods manufactured, which is then transferred to cost of goods sold.

Daniel Company's Manufacturing Overhead Account Showed a $4,500 Overallocated Balance