If manufacturing overhead is overapplied for the period, a method to bring the balance of the manufacturing overhead account to zero would be:
A) debit cost of goods sold, credit manufacturing overhead.
B) debit work in process inventory, credit manufacturing overhead.
C) debit manufacturing overhead, credit raw materials inventory.
D) debit manufacturing overhead, credit cost of goods sold.

Question

Quizplus · Accepted Answer

When manufacturing overhead is overapplied, it means that the overhead allocated to products is more than the actual overhead incurred. To correct this and bring the manufacturing overhead account balance to zero, the excess amount is removed by debiting the manufacturing overhead account and crediting the cost of goods sold. This adjustment reduces the cost of goods sold, reflecting that less overhead should have been allocated to the products.

If Manufacturing Overhead Is Overapplied for the Period, a Method