The journal entry for $17 of underapplied overhead is:
Cost of Goods Sold 17
Applied Overhead 17

Question

Quizplus · Accepted Answer

The journal entry for underapplied overhead would be:
Cost of Goods Sold XX
Underapplied Overhead XX
Since underapplied overhead means that less overhead was applied than actually incurred, it needs to be added to the Cost of Goods Sold. Therefore, the correct journal entry would be:
Cost of Goods Sold 17
Underapplied Overhead 17.

The Journal Entry for $17 of Underapplied Overhead Is