Which of the following accounts would be adjusted by the disposal of an immaterial amount of overapplied overhead?
A) Finished Goods Inventory
B) Materials Inventory
C) Work in Process Inventory
D) Cost of Goods Sold

Question

Quizplus · Accepted Answer

When overhead is overapplied, it means that the overhead allocated to products was more than the actual overhead incurred. If the amount is immaterial, it is typically adjusted against the Cost of Goods Sold to simplify accounting.

Which of the Following Accounts Would Be Adjusted by the Disposal