The appropriate method for the disposition of underapplied or overapplied factory overhead ?

Question

1- Is to COGS only .

2- Is to finished goods inventory only .

3- In between WIP, F.G. inventory and COGS .

4- Depends on the significance of the amount .

shrouk gamal mostafa · Answer

4- Depends on the significance of the amount

Malik Saleem Iqbal · Answer

3- In between WIP, F.G. inventory and COGS .

If amount is immaterial then fully charge to COGS.

It will be more appropriate to add the figures of MOH Actual & applied.