1.McDonnell Industries estimated manufacturing overhead for the year at $290,000. Manufacturing overhead for the year was underapplied by $12,000. The company applied $235,000 to work in process. The amount of actual overhead would have been: $223,000. $278,000. $247,000. none of these. 2. Which of the following correctly computes cost of goods manufactured? Beginning work in process + Cost of goods sold – Ending finished goods Beginning work in process + Direct materials used + Direct labor + Overhead – Ending work in process Beginning work in process + Direct materials used + Direct labor + Overhead None of these. 3.Select the incorrect statement regarding service companies. Service companies accumulate their service costs in a work in process account similar to manufacturers. Service companies may have raw material costs. Understanding the cost of providing a service is just as important as knowing the cost of making a product. Service companies do not maintain a finished goods account. .