Under- or overapplied manufacturing overhead at year-end is most commonly:
A)charged or credited to Work-in-Process Inventory.
B)charged or credited to Cost of Goods Sold.
C)charged or credited to a special loss account.
D)prorated among Work-in-Process Inventory, Finished-Goods Inventory, and Cost of Goods
E)ignored because there is no effect on the Cash account.

Question

Quizplus · Accepted Answer

Under- or overapplied manufacturing overhead is typically adjusted by charging or crediting the Cost of Goods Sold to reflect the actual costs incurred during the period.

Under- or Overapplied Manufacturing Overhead at Year-End Is Most Commonly