If the financial statements of Sushi Show, Inc.show $500 of over-applied overhead for the current year, where will that balance be shown in the financial statements if not material?

Question

Quizplus · Accepted Answer

Over-applied overhead is typically adjusted against the Cost of Goods Sold (COGS) in the income statement if the amount is not material. This adjustment decreases the COGS, thereby increasing the net income for the period.

If the Financial Statements of Sushi Show, Inc