During the year,a company incurred $500,000 of manufacturing overhead costs and allocated $510,000 of manufacturing overhead costs.At the 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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The company overallocated manufacturing overhead by $10,000 ($510,000 allocated - $500,000 incurred). To adjust, they need to credit Cost of Goods Sold, not debit it, to reduce the expense and correct the overapplied overhead.

During the Year,a Company Incurred $500,000 of Manufacturing Overhead Costs