Which of the following would be included in the entry to dispose of the under- or over applied overhead cost for the month?

Question

Quizplus · Accepted Answer

Overhead costs are initially recorded in the Manufacturing Overhead account, so the entry to dispose of over or under applied overhead would also involve Manufacturing Overhead. Option A is incorrect because Cost of Goods Sold is not affected by disposing of overhead cost. Option C is incorrect because it involves a debit to Manufacturing Overhead, which would increase the balance of the account rather than dispose of the cost. Option D is incorrect because a credit would result in a reduction of Cost of Goods Sold, which is not appropriate for disposing of overhead cost.

Which of the Following Would Be Included in the Entry