During the year,a company incurred $520,000 of manufacturing overhead costs and allocated $480,000 of manufacturing overhead costs.At year-end,the adjustment entry needed to adjust the Manufacturing Overhead account balance to zero will include a debit to Cost of Goods Sold.

Question

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Since the Manufacturing Overhead account balance needs to be adjusted to zero at year-end, any remaining balance will need to be transferred to the Cost of Goods Sold account, resulting in a debit to Cost of Goods Sold.

During the Year,a Company Incurred $520,000 of Manufacturing Overhead Costs