7 Which of the following is correct with respect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory,...

Extracted text: 7 Which of the following is correct with respect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? Faved out of question Select one: O a. Cost of Goods Sold will be lower if the underapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. O b. The balance in the Work-in-Process account after allocation will be the same under either method. O c. Operating income will be higher if all of the underapplied overhead is closed out to Cost of Goods Sold. O d. None of given ANSWER is correct. Fi O e. The balance in the Work-in-Process account after allocation will be lower if the underapplied overhead is closed out by allocating it to all appropriate accounts.