Under- or overapplied manufacturing overhead at year-end is most commonly charged or credited to Work-in-Process Inventory.

Question

Quizplus · Accepted Answer

Under- or overapplied manufacturing overhead at year-end is most commonly adjusted in the Cost of Goods Sold account, although some companies might choose to allocate it among Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold based on their accounting policies.

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