Any material amount of under- or overapplied factory overhead must always be closed to Cost of Goods Sold at the end of an accounting period.

Question

Quizplus · Accepted Answer

The treatment of under- or overapplied factory overhead can vary; it can be closed to Cost of Goods Sold, or it can be allocated among Work in Process, Finished Goods, and Cost of Goods Sold based on their respective balances.

Any Material Amount of Under- or Overapplied Factory Overhead Must