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

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.

Question added by Deleted user
Date Posted: 2015/02/20

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by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

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

by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

choice D, is the answer for your question. Thanks

by Mir Mujtaba Ali , Internal Audit Manager , Confidential

I think I must opt C

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

If Sales = Rs.8,00,000, Markup Rate =25% of Cost Calculate Cost of Goods Sold = ? 1. Rs. 640,000 2. Rs. 600,000 3. Rs. 200,000
Top Answer: Good answer with logics By Mr. Taimur so agreed to him.Best of luck. See More

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