To eliminate underapplied overhead at the end of the year,Manufacturing Overhead would be debited and Cost of Goods Sold would be credited.If manufacturing overhead is underapplied during the year,Manufacturing Overhead will need to be credited to bring the account balance to zero,while Cost of Goods Sold would be debited.

Question

Quizplus · Accepted Answer

To eliminate underapplied overhead, Manufacturing Overhead should be credited and Cost of Goods Sold should be debited, not the other way around.

To Eliminate Underapplied Overhead at the End of the Year,Manufacturing