Material amounts of underapplied or overapplied overhead should be
A)treated as an adjustment to cost of goods sold.
B)treated as an adjustment to work in process.
C)allocated to direct materials, work in process, and finished goods.
D)allocated to work in process, finished goods, and cost of goods sold.

Question

Quizplus · Accepted Answer

Material amounts of underapplied or overapplied overhead should be allocated to work in process, finished goods, and cost of goods sold as they affect all three accounts.

Material Amounts of Underapplied or Overapplied Overhead Should Be