The entry to close out a significant amount of overapplied manufacturing overhead would affect all of the below except:
A)decrease the cost of goods manufactured
B)decrease finished goods inventory
C)increase cost of goods sold
D)increase net income

Question

Quizplus · Accepted Answer

Closing out overapplied overhead reduces the cost of goods manufactured and finished goods inventory, and increases net income. It does not affect the cost of goods sold.

The Entry to Close Out a Significant Amount of Overapplied