Overallocation of manufacturing overhead would require which of the following year-end adjustments?

Question

Quizplus · Accepted Answer

A credit to Cost of sales would be required to correct the overallocation of manufacturing overhead. This is because the overallocation has resulted in the cost of goods sold being understated. By crediting the cost of sales account, the cost of goods sold will be increased to reflect the correct amount of manufacturing overhead that should have been allocated to the products.

Overallocation of Manufacturing Overhead Would Require Which of the Following