ABC Company listed the following data for 2010:
The journal entry to dispose of overapplied/underapplied overhead,if overhead is applied based on direct labor hours,would include a credit to:

Question

ABC Company listed the following data for 2010: 
The journal entry to dispose of overapplied/underapplied overhead,if overhead is applied based on direct labor hours,would include a credit to:

Quizplus · Accepted Answer

If overhead is applied based on direct labor hours, any overapplied/underapplied overhead will be accounted for in the Cost of Goods Sold account. Therefore, the journal entry to dispose of overapplied/underapplied overhead would include a credit to Cost of Goods Sold.

ABC Company Listed the Following Data for 2010