The most common method for disposing of the balance in Manufacturing Overhead is to make a direct adjustment to Cost of Goods Sold.The most common method for disposing of the balance in Manufacturing Overhead is to make a direct adjustment to Cost of Goods Sold.Doing so makes sense as long as most of the jobs worked on during the period were completed and sold.

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Making a direct adjustment to Cost of Goods Sold is a common method for disposing of the balance in Manufacturing Overhead, especially if most of the jobs worked on during the period were completed and sold. This helps allocate the overhead costs to the products sold and adjust the cost of goods sold accordingly.

The Most Common Method for Disposing of the Balance in Manufacturing