Under what circumstance should the amount of overallocation or underallocation be reflected as an adjustment to cost of goods sold?

Question

Quizplus · Accepted Answer

When most of the inventory produced during the period has been sold, the overallocation or underallocation of overhead costs is typically adjusted in the cost of goods sold. This is because the majority of the costs have already been transferred out of inventory and into cost of goods sold, making it the most appropriate place for adjustment to reflect the actual costs incurred.

Under What Circumstance Should the Amount of Overallocation or Underallocation