Question
University at Alban... A Anime1.me t e... Sy N 3x*2-7x- Cengage © Course Home y ....

University at Alban... A Anime1.me t e... Sy N 3x*2-7x- Cengage © Course Home y . M Mathway anagerial Accounting - Brewer, Garrison, Noreen, 8e, Job-Order Costing: Cost Flows and External Reporting What methods can be used to dispose of underapplied or overapplied manufacturing overhead? Check all that apply. Close it to Work in process. Close it to Cost of goods sold. I Allocate it to Work in process, Finished goods, and Cost of goods sold. Close it to Finished goods. Allocate it to Raw materials, Work in process, and Finished goods. Do you know the answer? Read about this I know it Think so Unsure No idea
Answers
The below two options are to be selected:
close it to cost of goods sold.
allocate it to work in process, finished goods and cost of goods sold.
explanation:
when overhead is under applied, the adjusting entry would debit cost of goods sold or work in process, finished goods and cost of goods sold, the credit will be made to manufacturing overhead.
when the overhead is over applied, the adjusting entry would debit manufacturing overhead, credit cost of goods sold or work in process, finished goods and cost of goods sold, as the case may be.
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