The amount of under or over applied overhead must be removed with an adjusting entry at the end of the accounting period.

Name: The amount of under or over applied overhead must be removed with an adjusting entry at the end of the accounting period.
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Question

Quizplus · Accepted Answer

The amount of under or over applied overhead is adjusted at the end of the accounting period to ensure that the cost of goods sold and inventory balances are accurate, typically through an adjusting journal entry.

The Amount of Under or Over Applied Overhead Must Be