If manufacturing overhead has been overapplied during the year the adjusting entry at the end of the year will show a
A) debit to Manufacturing Overhead.
B) credit to Finished Goods Inventory
C) debit to Cost of Goods Sold.
D) credit to Work in Process Inventory.

Question

Quizplus · Accepted Answer

When manufacturing overhead is overapplied, it means that the overhead costs allocated to products were more than the actual overhead costs incurred. To adjust this, the Manufacturing Overhead account is debited to reduce its balance, correcting the overapplied amount.

If Manufacturing Overhead Has Been Overapplied During the Year the Adjusting