Here is selected data for Lori Corporation: The journal entry to close manufacturing overhead would include a

Question

Here is selected data for Lori Corporation:  The journal entry to close manufacturing overhead would include a

Quizplus · Accepted Answer

To close manufacturing overhead, we need to transfer the remaining balance in the manufacturing overhead account to cost of goods sold. This can be accomplished by issuing a debit to manufacturing overhead for the remaining balance and a credit to cost of goods sold for the same amount. Therefore, the correct entry would be a debit to manufacturing overhead for $4,000.

Here Is Selected Data for Lori Corporation: the Journal