Manufacturing overhead has an underallocated balance of $6,200; raw materials inventory balance is $50,000; work in process inventory is $30,000; finished goods inventory is $20,000; and cost of goods sold is $100,000. Which of these accounts would have an ending credit balance?

Question

Quizplus · Accepted Answer

Manufacturing overhead with an underallocated balance indicates additional costs need to be allocated to the products, not that any of the inventory accounts would inherently have a credit balance. Inventory accounts and cost of goods sold typically have debit balances, reflecting the cost of materials, work in process, finished goods, and the cost of goods sold.

Manufacturing Overhead Has an Underallocated Balance of $6,200; Raw Materials