If manufacturing overhead has been overallocated during the period,and most of the jobs produced have been sold,then:

Question

Quizplus · Accepted Answer

If manufacturing overhead has been overallocated, it means that the actual manufacturing overhead expenses were lower than the allocated amount. This results in an artificially inflated cost of goods sold. To correct this, the overallocated amount of manufacturing overhead should be credited back to the cost of goods sold. Therefore, the cost of goods sold should be decreased. Options B), C), and D) are not accurate in this scenario.

If Manufacturing Overhead Has Been Overallocated During the Period,and Most