At the end of the last fiscal year,Drury Company had the following account balances:
Overupplied ovehead$\$ 9,000$
Cost ar Goods Sald$\$ 860,000$
Work in Procese Inventory$\$ 36,000$
FinishedGoods Inventory$ \$ 74,000 $
If the most common treatment of assigning overapplied overhead were used,the final balance in Cost of Goods Sold is:

Question

Quizplus · Accepted Answer

The most common treatment of assigning overapplied overhead is to close the balance to Cost of Goods Sold. Therefore, the amount of overapplied overhead will be deducted from the total cost of goods sold. 
Cost of Goods Sold = \$860,000 - \$9,000 = \$851,000.

Option A is the correct answer.

At the End of the Last Fiscal Year,Drury Company Had $9,000\$ 9,000$9,000

At the End of the Last Fiscal Year,Drury Company Had $\$ 9,000$