If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then

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When manufacturing overhead has been overallocated, it means that more overhead costs have been assigned to the products than the actual overhead costs incurred. As a result, the cost of goods sold has been overstated, as it includes the overallocated portion of overhead costs. To correct this, the amount of overallocated overhead must be deducted from the cost of goods sold, which will decrease the cost of goods sold on the income statement.

If Manufacturing Overhead Has Been Overallocated During the Period, and Most