At the end of the year the accountant credits the amount of the overapplied overhead to Cost of Goods Sold.

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Overapplied overhead means that more overhead was allocated to the products than was actually incurred. Since overhead is a part of the cost of goods sold, the accountant must credit the overapplied amount to the cost of goods sold account to adjust for the overallocation of overhead.

At the End of the Year the Accountant Credits the Amount