If underapplied overhead is considered to be immaterial,it is closed to which of the following accounts?
Work in Process Finished Goods Cost of Goods Sold

Question

Quizplus · Accepted Answer

When underapplied overhead is considered immaterial, it is typically closed to the Cost of Goods Sold account directly, rather than being allocated among Work in Process, Finished Goods, and Cost of Goods Sold. This simplifies the accounting process for small amounts.

If Underapplied Overhead Is Considered to Be Immaterial,it Is Closed