When closing overapplied manufacturing overhead to cost of g

When closing overapplied manufacturing overhead to cost of goods sold, which of the following would be true?

Work in process will be decreased

Cost of goods sold will be increased

Net income will be decreased

Gross margin will be increased

	a.	Work in process will be decreased
	b.	Cost of goods sold will be increased
	c.	Net income will be decreased
	d.	Gross margin will be increased

Solution

When closing overapplied manufacturing overhead to cost of goods sold Gross margin will be increased Option D is correct