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Question - At the end of the year, Jenkins Corporation had $120,000 in the Factory Overhead account and $100,000 in the Applied Factory Overhead account. Mark Gibbs, the controller, has decided that the overhead difference is too large to close to only the Cost of Goods Sold account. He decides it is best to charge the overhead difference to the Work in Process, Finished Goods and Cost of Goods Sold accounts. The balance in these three accounts is:
Work in Process $30,000
Finished Goods $60,000
Cost of Goods Sold $210,000
How much of the overhead difference will be charged to the Cost of Goods Sold account?
$2,000.
$14,000.
$6,000.
$20,000.
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