Question

A company incurs factory overhead costs of $1,200 and applied $1,500. If the difference is considered immaterial, then the: (Check all that apply.) Multiple select question. Factory Overhead account has a credit balance of $300 before adjusting. adjusting entry will require a debit to Cost of Goods Sold. adjusting entry will require a credit to Cost of Goods Sold. Factory Overhead account has a debit balance of $300 before adjusting.

Answer 1

Answer:

Factory Overhead account has a credit balance of $300 before adjusting.

adjusting entry will require a credit to Cost of Goods Sold.

Explanation:

Given that the actual overhead is $1,200 so the same should be debited to factory overhead account

And, the applied overhead is $1,500 so the same should be credited to the factory overhead account

In addition to this, the applied overhead is more than the actual overhead

So, these two statements should be considered