The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for November would include the following:
A)debit to Cost of Goods Sold of $66,060
B)credit to Cost of Goods Sold of $66,060
C)debit to Cost of Goods Sold of $1,100
D)credit to Cost of Goods Sold of $1,100

Question

Quizplus · Accepted Answer

When manufacturing overhead is underapplied, it means that actual overhead costs were greater than the overhead costs charged to production. Therefore, to adjust for the underapplied overhead, a debit is made to Cost of Goods Sold. The amount of the adjustment would be the amount of the underapplied overhead, which in this case is $1,100. Therefore, only choice C is correct.

The Journal Entry to Record the Allocation of Any Underapplied