During the year,a company incurred $522,000 of manufacturing overhead costs and allocated $483,000 of manufacturing overhead costs.At year-end,the adjustment entry needed to adjust the Manufacturing Overhead account balance to zero will include a debit to Cost of Goods Sold.

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Since the allocated amount ($483,000) is less than the actual amount incurred ($522,000), there is an overapplied manufacturing overhead balance. To adjust this balance to zero at year-end, a debit entry is made to Cost of Goods Sold.

During the Year,a Company Incurred $522,000 of Manufacturing Overhead Costs