When the amount of overapplied factory overhead is significant, the entry to close overapplied factory overhead will most likely require

Question

A. A debit to cost of goods sold.

B. Debits to cost of goods sold, finished goods inventory, and work-in-process inventory.

C. A credit to cost of goods sold.

D. Credits to cost of goods sold, finished goods inventory, and work-in-process inventory.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN · Answer

Option D >>>>>>>>>>>>>>>>>>> Credits to cost of goods sold, finished goods inventory, and work-in-process inventor

Ahmed Abdi Mahad · Answer

choice D, is the answer for your question. Thanks

Mir Mujtaba Ali · Answer

I think I must opt C

When overheads are over applied, generally we debit manufacturing overheads and credit the cost of goods sold