When using the proration approach the final balance in the Manufacturing Overhead Control account can be closed to which account(s)at year-end?

Question

Quizplus · Accepted Answer

The proration approach involves allocating and transferring any under- or over-applied manufacturing overhead to the Work-in-Process, Finished Goods, or Cost of Goods Sold accounts. Thus, at year-end, the final balance in the Manufacturing Overhead Control account can be closed to any of these accounts, depending on the proration method used and the specific situation of the company. Therefore, E (Work-in-Process Control, Finished Goods Inventory or Cost of Goods Sold would normally be used) is the best choice as it includes all the possible options.

When Using the Proration Approach the Final Balance in the Manufacturing