The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for September would include the following:
A)credit to Cost of Goods Sold of $211,880
B)debit to Cost of Goods Sold of $5,670
C)credit to Cost of Goods Sold of $5,670
D)debit to Cost of Goods Sold of $211,880

Question

Quizplus · Accepted Answer

If the manufacturing overhead is underapplied (meaning actual overhead costs were higher than the overhead allocated to products), the balance must be allocated to Cost of Goods Sold as a debit, which would increase its value. If the overhead is overapplied (meaning actual overhead costs were lower than the overhead allocated to products), the balance must be allocated to Cost of Goods Sold as a credit, which would decrease its value. In this case, the journal entry should credit Cost of Goods Sold with the amount of the overapplied overhead, which is $5,670. Therefore, the correct answer is choice C.

The Journal Entry to Record the Allocation of Any Underapplied