If manufacturing overhead is overapplied for the period,a method to bring the balance of the manufacturing overhead account to zero would be:
A) Debit cost of goods sold,credit manufacturing overhead
B) Debit work in process inventory,credit manufacturing overhead
C) Debit manufacturing overhead,credit raw materials inventory
D) Debit manufacturing overhead,credit cost of goods sold

Question

Quizplus · Accepted Answer

If manufacturing overhead is overapplied, it means that the actual overhead costs incurred during the period were lower than the overhead costs allocated to production. Therefore, the balance in the manufacturing overhead account is higher than the actual amount of overhead expenses. To bring the balance of the manufacturing overhead account to zero, we need to reduce it by transferring the balance to the cost of goods sold account.

Option A is incorrect because it would reduce the cost of goods sold account, which is not the correct account to adjust for the overapplied overhead.

Option B is incorrect because it would increase the value of work in process inventory, which is not affected by the overapplied overhead.

Option C is incorrect because it involves the raw materials inventory account, which is not affected by the overapplied overhead.

If Manufacturing Overhead Is Overapplied for the Period,a Method to Bring