XYZ uses job costing. Actual manufacturing overhead for the period is $20,400 wh
ID: 2608513 • Letter: X
Question
XYZ uses job costing. Actual manufacturing overhead for the period is
$20,400
while allocated manufacturing overhead is
$18,400.
What entry will close the manufacturing overhead balance?
XYZ uses job costing. Actual manufacturing overhead for the period is $20,400 while allocated manufacturing overhead is $18,400. What entry will close the manufacturing overhead balance? A. Debit the Manufacturing Overhead account and credit the Work-in-Process account for $2,000. B. Debit the Cost of Goods Sold account and credit the Manufacturing Overhead account for $2,000. O C. Debit the Manufacturing Overhead account and credit the Cost of Goods Sold account for $2,000. D. Debit the Cost of Goods Sold account and credit the Finished Goods Inventory account for $2,000.Explanation / Answer
Option b is correct
As if a manufacturing overhead shows a debit balance it means the overhead are underapplied
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