At the end of each year, the underapplied or overapplied overhead is as an adjustment to the Cost of Goods Sold account.

Name: At the end of each year, the underapplied or overapplied overhead is as an adjustment to the Cost of Goods Sold account.
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Question

Quizplus · Accepted Answer

This is generally true. Underapplied or overapplied overhead is adjusted at the end of the year by allocating it to the Cost of Goods Sold account. This helps to ensure that the correct amount of overhead is included in the cost of the goods sold.

At the End of Each Year, the Underapplied or Overapplied