Manufacturing overhead has an overallocated allocated balance of $6,200; raw materials inventory balance is $50,000; work in process inventory is $30,000; finished goods inventory is $20,000; and cost of goods sold is $100,000.

Which of these accounts would have an ending credit balance?

Question

Which of these accounts would have an ending credit balance?

Quizplus · Accepted Answer

An overallocated balance in manufacturing overhead means that too much overhead was allocated to the products during the manufacturing process. This results in an ending credit balance in the manufacturing overhead account after the actual overhead costs are incurred. The other accounts listed are inventory or expense accounts, which would not have an ending credit balance in this scenario.

Manufacturing Overhead Has an Overallocated Allocated Balance of $6,200; Raw