Answer:
c. Debit: Overhead Control $10,000,000
Credit: Cost of Goods Sold $10,000,000
Explanation:
The journal entry to close the overhead account is presented below:
Overhead Control A/c Dr $10,000,000
To Cost of Goods Sold A/c $10,000,000
(Being the overhead account is closed)
The computation is shown below:
= Applied overhead - actual overhead
where,
Applied overhead equal to
= $450 × 100,000 machine hours
= $45,000,000
And, the actual overhead is $35,000,000
So, the amount would be
= $45,000,000 - $35,000,000
= $10,000,000
Since the applied overhead is greater than the actual overhead, so we debited the overhead control account and credited the cost of goods sold account
