When underapplied or overapplied manufacturing overhead is prorated, to which of the following accounts can amounts be assigned?
A) Direct materials, manufacturing overhead and direct labour
B) Cost of goods sold, work in process and finished goods
C) Direct materials, finished goods and cost of goods sold
D) Direct materials, work in process inventory and finished goods inventory

Question

Quizplus · Accepted Answer

Underapplied or Overapplied Manufacturing Overhead is prorated among Cost of Goods Sold, Work in Process, and Finished Goods accounts. Option B lists all three accounts. The other options do not include all three accounts.

When Underapplied or Overapplied Manufacturing Overhead Is Prorated, to Which