The applied overhead of a job is more than the actual overhead and it is considered immaterial by the company.An entry to record this would involve a
A)debit to the Materials Inventory account.
B)credit to the Overhead account.
C)credit to the Cost of Goods Sold account.
D)debit to the Work in Process Inventory account.

Question

Quizplus · Accepted Answer

When applied overhead is more than actual overhead and the difference is immaterial, the overapplied overhead is typically closed to the Cost of Goods Sold account by crediting it.

The Applied Overhead of a Job Is More Than the Actual