To eliminate underapplied overhead at the end of the year,Manufacturing Overhead would be credited and Cost of Goods Sold would be debited.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.

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This is correct. To eliminate underapplied overhead at the end of the year, Manufacturing Overhead would be credited and Cost of Goods Sold would be debited. 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.

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