The following partially completed T accounts summarize the transactions of Carlton Company for last year:
At the end of the year,the company closes out the balance in the Overhead account to Cost of Goods Sold.
The applied overhead is

Question

The following partially completed T accounts summarize the transactions of Carlton Company for last year:   
At the end of the year,the company closes out the balance in the Overhead account to Cost of Goods Sold.
The applied overhead is

Quizplus · Accepted Answer

To calculate the applied overhead, we need to use the formula:

Applied Overhead = Actual Overhead - Overhead Applied to Work in Process

From the T-accounts, we can see that:

- Actual Overhead = $57,000 (Debit side of the Overhead account)
- Overhead Applied to Work in Process = $28,000 (Credit side of the Work in Process account)

Therefore, the applied overhead is:

Applied Overhead = $57,000 - $28,000 = $29,000

Therefore, the correct answer is B.

The Following Partially Completed T Accounts Summarize the Transactions of Carlton