What is the impact of disposing any overapplied overhead between the appropriate accounts, if the amount is material?

Question

Quizplus · Accepted Answer

Disposing any overapplied overhead between the appropriate accounts will reduce cost of goods sold and increase income since the overapplied overhead was originally recorded as an expense. However, it will also reduce inventory since the cost of goods sold is being reduced. Therefore, choice C is the best answer as it correctly identifies all three impacts.

What Is the Impact of Disposing Any Overapplied Overhead Between