When is the adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overhead generally done?

Question

Quizplus · Accepted Answer

The adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overhead is generally done at the end of the period during the closing process. This is because the allocation of manufacturing overhead is based on estimates and the actual amount incurred may differ from the estimated amount. Therefore, the adjustment is necessary to ensure that the cost of goods sold is reported accurately.

When Is the Adjusting of Cost of Goods Sold for the Underallocation