Ferguson Company Recognized $400 of Estimated Manufacturing Overhead Costs at the End

Multiple Choice

Ferguson Company recognized $400 of estimated manufacturing overhead costs at the end of the month.How does this transaction affect the financial statements?

A) $$\begin{array} { | l | l | l | l | l | l | l | l | l | l | l|l|} \hline (400) & +&\mathrm { NA } & = &\mathrm { NA }&+ & (400) & \mathrm { NA } & - &400& =&400\\\hline\end{array}$$

B) $$\begin{array} { | l | l | l | l | l | l | l | l | l | l | l|l|} \hline (400) & +&\mathrm { NA } & = &400&+ &\mathrm { NA }& \mathrm { NA } & - &\mathrm { NA }& =&\mathrm { NA }\\\hline\end{array}$$



C) $$\begin{array} { | l | l | l | l | l | l | l | l | l | l | l|l|} \hline (400) & +&400& = &\mathrm { NA }&+ &\mathrm { NA }& \mathrm { NA } & - &\mathrm { NA }& =&\mathrm { NA }\\\hline\end{array}$$



D) $$\begin{array} { | l | l | l | l | l | l | l | l | l | l | l|l|} \hline 400 & +&(400) & = &\mathrm { NA }&+ &\mathrm { NA }& \mathrm { NA } & - &\mathrm { NA }& =&\mathrm { NA }\\\hline\end{array}$$