Conceptually any under- or overapplied overhead at the end of the year should be allocated among all of the following except
A) cost of goods sold.
B) ending work in process inventory.
C) ending raw materials inventory.
D) ending finished goods inventory.

Question

Quizplus · Accepted Answer

Overhead should be allocated to all inventory accounts, including cost of goods sold, ending work in process inventory, and ending finished goods inventory, but not to ending raw materials inventory which is not affected by overhead costs.

Conceptually Any Under- or Overapplied Overhead at the End of the Year