If manufacturing overhead is materially over-applied,it is best to:
A)Close it to work-in-process inventory.
B)Close it to finished goods inventory.
C)Close it to cost of goods sold.
D)Apportion it among work-in-process,finished goods,and cost of goods sold.

Question

Quizplus · Accepted Answer

When manufacturing overhead is materially over-applied, it is best to apportion the over-applied amount among work-in-process, finished goods, and cost of goods sold based on their relative sizes. This method provides the most accurate reflection of the costs associated with each stage of production and inventory.

If Manufacturing Overhead Is Materially Over-Applied,it Is Best To