The entire difference between the actual manufacturing overhead cost for a period and the applied manufacturing overhead cost is typically closed to the Work In Process account.

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The difference between the actual manufacturing overhead cost and the applied manufacturing overhead cost is typically closed to the Cost of Goods Sold (COGS) account, although some companies might choose to allocate a portion to Work in Process (WIP) and Finished Goods (FG) based on their accounting policies.

The Entire Difference Between the Actual Manufacturing Overhead Cost for a Period