If the amount of overapplied or underapplied manufacturing overhead is relatively large,most companies will generally make an adjustment to

Question

Quizplus · Accepted Answer

When the amount of overapplied or underapplied manufacturing overhead is relatively large, the company needs to allocate it to the appropriate accounts, which includes Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold. This is done to ensure that the actual overhead costs are accurately reflected in the financial statements. Therefore, option D is the best choice.

If the Amount of Overapplied or Underapplied Manufacturing Overhead Is