Which account would be adjusted for the disposal of an immaterial amount of overapplied manufacturing overhead?

Question

Quizplus · Accepted Answer

When there is an immaterial amount of overapplied manufacturing overhead, it is common practice to adjust the Cost of Sales (or Cost of Goods Sold) account directly. This simplifies the accounting process by avoiding the need to allocate the overapplied amount among various inventory accounts, which would have a negligible impact on financial statements.

Which Account Would Be Adjusted for the Disposal of an Immaterial