Marina Corp.applied overhead to jobs during the period as follows: The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account.The entry to dispose of this remaining factory overhead balance is:

Question

Quizplus · Accepted Answer

The remaining balance in the Factory Overhead account should be transferred to Cost of Goods Sold. This is done by debiting Factory Overhead and crediting Cost of Goods Sold. Therefore, option B is the correct entry. Option A is incorrect because it debits Cost of Goods Sold, which would decrease it, but the remaining balance in Factory Overhead needs to be transferred to Cost of Goods Sold. Option C is also incorrect because it credits Work in Process Inventory, which would increase it, but the remaining overhead balance is not related to work in process. Option D is incorrect because it debits Work in Process Inventory, which would decrease it, but the remaining overhead balance should be transferred to Cost of Goods Sold. Option E is incorrect because an entry is needed to dispose of the remaining balance in Factory Overhead.