Question & Answer: When manufacturing overhead is applied to production, it is added to: A) the Cost of Goods Sold account B) the Raw Materials account. C) the…..

When manufacturing overhead is applied to production, it is added to: A) the Cost of Goods Sold account B) the Raw Materials account. C) the Work in Process account. D) the Finished Goods inventory account. Bassett Corporation has two production departments, Milling and customizing. The company uses a job-order consisting system and computes a predetermined overhead rate in each production department. The Mailing Department’s predetermined overhead rate its based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: The predetermined overhead rate for the Milling Department is closest to: A) $19.00 per machine-hour B) $2.10 per machine-hour C) $7.40 per machine-hour D) $9.50 per machine-hour Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs: A) started in process during the period. B) in process during the period. C) completed and sold during the period. D) completed during the period. When closing overapplied manufacturing overhead to Cost of Goods Sold, which of the following would be true? A) Work in Process will decrease. B) Cost of Goods Sold will increase. C) Net income will decrease. D) Gross margin will increase.