Problem: Lietz Corporation has provided the following data concerning manufacturing overhead for January:
Actual Manufacturing overhead incurred 52,000
Manufacturing overhead applied to Work in Process 75,000
The company's Cost of Goods Sold was $369,000 prior to closing out its Manufacturing overhead account. The company closes out its manufacturing overhead account to Cost of Goods Sold. Which of the following statements are true.
- Manufacturing overhead was underapplied by $23,000; cost of goods sold after closing out the manufacturing overhead account is $392,000
- Manufacturing overhead was underapplied by 23,000; cost of goods sold after closing out the manufacturing overhead account is $346,000
- Manufacturing overhead was overapplied by 23,000; cost of goods sold after closing out the manufacturing overhead account is $346,000
- Manufacturing overhead was overapplied by $23,000; cost of goods sold after closing out the manufacturing overhead account is $392,000.