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At the end of the most recent financial period, the Ajax Company had a balance...

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Accounting

At the end of the most recent financial period, the Ajax Company had a balance of $35,000 in the manufacturing overhead control account and $24,000 in the manufacturing overhead applied account. The company has a policy of adjusting cost of goods sold for the difference between the two accounts. What would be the effect to the company's net income after it makes this adjustment at the end of the month?
Multiple Choice
Net income will decrease by $11,000.
Net income will increase by $11,000.
There will be no difference. You don't have to adjust the overhead accounts; they just roll over to the next accounting period.
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