Manufacturing overhead has an underallocated balance of $6,200; raw materials inventory balance is $50,000; work in process inventory is $30,000; finished goods inventory is $20,000; and cost of goods sold is $100,000. Using this information,which account would have an opening credit balance?

Question

Quizplus · Accepted Answer

Inventory accounts like raw materials, work in process, and finished goods typically have debit balances. An underallocated manufacturing overhead indicates a debit balance, so none of the given inventory accounts would have an opening credit balance.

Manufacturing Overhead Has an Underallocated Balance of $6,200; Raw Materials