The Journal Entry to Write-Off an Insignificant Overapplied Overhead Balance

question 150

Multiple Choice

The journal entry to write-off an insignificant overapplied overhead balance at the end of an accounting period for a service firm is:
$$\begin{array} { | l | l | c | c | } \hline \text { A } & \text { Applied Manufacturing Overhead } & \mathrm { xxx } & \\\hline & \text { Cost of Services Billed } & \mathrm { xxx } & \\\hline & \text { Manufacturing Overhead Control } & & \mathrm { xxx } \\\hline\end{array}$$
$$\begin{array} { | l | l | c | c | } \hline \text { B. } & \text { Applied Manufacturing Overhead } & \mathrm { xxx } & \\\hline & \text { Cost of Services Billed } & & \mathrm { xxx } \\\hline & \text { Manufacturing Overhead Control } & & \mathrm { xxx } \\\hline\end{array}$$
$$\begin{array} { | l | l | c | c | } \hline \text { C. } & \text { Applied Manufacturing Overhead } & \mathbf { x x x } & \\\hline& \text { Work-In-Process Inventory } & \mathbf { x x x } & \\\hline &\text { Finished Goods Inventory } & \mathbf { x x x } & \\\hline &\text { Cost of Services Billed } & \mathbf { x x x } & \\\hline &\text { Manufacturing Overhead Control } & & \mathbf { x x x } \\\hline\end{array}$$
$\begin{array}{|l|l|c|c|}\hline \text { D.}&\text { Applied Manufacturing Overhead } & \mathrm{xxx} & \\\hline &\text { Work-In-Process Inventory } & & \mathrm{xxx} \\\hline& \text { Finished Goods Inventory } & & \mathrm{xxx} \\\hline &\text { Cost of Services Billed } & & \mathrm{xxx} \\\hline &\text { Manufacturing Overhead Control } & & \mathrm{xxx} \\\hline\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Outsourcing

The practice of hiring third parties to perform services or create goods that traditionally were performed in-house, often for efficiency and cost savings.

Core Competencies

Fundamental strengths or unique advantages that a company or individual possesses, central to its success and competitiveness.

World-Class Capabilities

Exceptional skills, methods, and processes that enable an organization to perform at the highest international standards.

Outsourcing Concerns

Issues or considerations related to the practice of transferring business processes or services to external providers, including quality, security, and dependency risks.